Fundamental outlook:
GBP/JPY is expected to consolidate in a higher range as markets are awiting BOJ's policy decision. GBP/JPY undermined by reduced investor risk appetite, Japan export sales, and higher-than-expected UK GfK consumer confidence index of +4 (versus forecast +3) in April. But GBP/USD is limited by waning investor risk appetite upside and by demand from Japan importers downside.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, although latter is at overbought levels, five-day moving average above 15-day moving average and advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 184.20 and the second target at 185. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.60. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.75. The pivot point is at 182.40.
Resistance levels:
184.20
185
185.65
Support levels:
181.60
180.75
180
