Overview:
GBP/JPY - to trade in lower range. Undermined by increased risk aversion; Japan exporter sales; reduced expectations that BOJ could embark on buying of foreign bonds as part of its easing program after PM Abe cast doubt on the option earlier this week. But GBP/JPY losses tempered by demand from Japan importers; positions adjustment before weekend. Daily chart negative-biased as MACD & stochastics bearish; five-day moving average below 15-day MA and falling.
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 - 145.3
Technical Comment:
The pair is rebounding and is challenging its resistance ahead of a weakness, the RSI lacks upward momentum.
