Overview:
GBP/JPY is forecasted to trade with risks skewed lower, undermined by profit-taking on short yen positions ahead of G-20 meeting, weaker euro sentiment, and Japan exports sales. But EUR/JPY losses are tempered by demand from Japan's importers and investment trusts and aggressive Bank of Japan monetary easing policy. Daily chart is mixed as stochastics stays elevated at overbought, but MACD is bearish.
Preference:
Sell below 145.4 with targets at 144.15 and 143.4 in extension.
Support Levels:
S1 - 144.15
S2 - 143.4
S3 - 143
Alternative scenario:
Buy above 145.9. Above 145.9 look for further upside with 146.1 & 146.65 as targets.
Resistance Levels:
R1 - 146.1
R2 - 146.65
R3 - 147.3
Technical Comment:
The pair remains capped by a declining trend line and should face further weakness.
