Overview:
GBP/JPY is trading with bullish bias. The rate is supported after G-20 decided not to rebuke Japan for is recent efforts to jumpstart its economy that has sent the yen sharply lower. EUR/JPY is also buoyed 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 five-day moving average is meandering sideways above rising 15-day MA.
Preference:
Buy above 144.75 with targets at 145.9 and 146.55 in extension.
Resistance levels:
R1 - 145.9
R2 - 146.55
R3 - 147
Alternative scenario:
Sell below 144.75. Below 144.75 look for further downside with 143.65 and 142.7 as targets.
Support levels:
S1 - 143.65
S2 - 142.7
S3 - 142.25
Technical comment:
The pair is facing a pullback and is challenging its support, the RSI is mixed and calls for caution.
