Overview:
GBP/JPY is supposed to trade lower, undermined by profit-taking on the short yen positions as caution prevail while G-20 members meet in Moscow today and Saturday, positions adjustment before weekend, weaker euro sentiment after bad eurozone 4Q GDP data and Japan's exports sales. But GBP/JPY losses are tempered by demand from Japan's importers and investment trusts, aggressive Bank of Japan monetary easing policy. Daily chart is negatively biased as MACD is bearish, stochastics is falling from overbought area.
Preference:
Sell below 144.25 with targets at 142.25 and 141.7 in extension.
Support Levels:
S1 - 142.25
S2 - 141.7
S3 - 141.2
Alternative scenario:
Buy above 144.25. Above 144.25 look for further upside with 144.85 and 145.4 as targets.
Resistance Levels:
R1 - 144.85
R2 - 145.4
R3 - 146
Technical Comment:
The pair stands below its new resistance and remains capped by a declining trend line, further weakness is likely as the RSI stands below its neutrality area.
