Overview:
GBP/JPY is trading in higher range. The rate is supported after G-20 avoided a direct rebuke of Japan's recent efforts to jumpstart its economy, clearing the way for BOJ to continue expanding its bond-buying program. GBP/JPY is also supported by demand from Japan importers and investment trusts. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is mixed as MACD and stochastics are in bearish mode; but bullish-piercing candlestick pattern was completed on Friday.
Preference:
Buy above 143.65 with targets at 146.55 and 147.25 in extension.
Resistance levels:
R1 - 146.55
R2 - 147.25
R3 - 147.8
Alternative scenario:
Sell below 143.65. Below 143.65 look for further downside with 142.7 and 142.25 as targets.
Support levels:
S1 - 142.7
S2 - 142.25
S3 - 141.75
Technical comment:
The RSI is well directed.
