Overview:
GBP/JPY is trading in lower range. The rate is weighed by increased risk aversion; Japan exporter sales. But GBP/JPY losses tempered by aggressive Bank of Japan monetary easing stance; demand from Japan importers; positions adjustment before weekend. Pair is also buoyed by demand from Japan importers and investment trusts; confirmation of Haruhiko Kuroda's nomination as new BOJ governor which bolster expectations of further monetary easing from Japan's central bank. But gains tempered by Japan exporter sales; selling of yen crosses amid negative risk appetite.
Recommendation:
If the price moves below to the pivot point of 140.13, then look for downward movement towards 139.04 and below that 138.45.
Support levels:
S1 - 139.04
S2 - 138.45
S3 - 137.95
Alternative scenario:
Buy above 140.13, keep in view of first target of 140.75 and second target 141.22.
Resistance levels:
R1 - 140.75
R2 - 141.22
R3 - 141.85
Technical comment:
Daily chart is mixed as MACD is bearish, five- and 15-day moving averages are falling; but stochastics is bullish at oversold.
