Fundamental overview:
GBP/JPY is expected to consolidate with bullish bias. It is undermined by the weak GBP/USD undertone and Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers, improved investor risk appetite, and sterling demand on soft EUR/GBP cross.
Technical comment:
The daily chart is mixed as the MACD and stochastics are in bullish mode, five and 15-day moving averages are advancing; but bearish doji shooting-star candlestick pattern was completed on Monday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as far 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 178.45 and the second target at 178.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 177.15. A break of this target is likely to push the pair further downwards, and one may expect the second target at 176.85. The pivot point is at 177.45.
Resistance levels:
178.45
178.90
179.55
Support levels:
176.75
176
175.25
The material has been provided by InstaForex Company - www.instaforex.com
