Overview:
GBP/JPY is trading in lower range. The rate is undermined by increased risk aversion; Japan exporter sales. But GBP/JPY losses tempered by aggressive Bank of Japan monetary easing stance; demand from Japan importers. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Wednesday; MACD and stochastics are in bearish mode; five-day moving average is staged bearish crossover against 15-day MA.
Preference:
Sell below 142.9 with targets at 141.2 and 140.5 in extension.
Support levels:
S1 - 141.2
S2 - 140.5
S3 - 140
Alternative scenario:
Buy above 142.9. Above 142.9 look for further upside with 144.2 and 144.7 as targets.
Resistance levels:
R1 - 144.2
R2 - 144.7
R3 - 145
Technical comment:
The RSI is capped by a bearish trend line.
