Overview:
GBP/JPY is trading in higher range. The rate is buoyed by positive investor risk appetite; expectations of aggressive monetary easing from Japan's central bank to achieve 2% inflation target; demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales; negative euro sentiment. Daily chart is mixed as MACD is bearish; but stochastics is rising from oversold; bullish outside-day-range pattern was completed on Friday.
Recommendation:
Buy above 139.75 with targets in sight of 141.25 and 142 .
Resistance levels:
R1 - 141.25
R2 - 142
R3 - 142.45
Alternative scenario:
Sell below 139.75 and look for further downside with 139.1 and 138.4 as first and second targets.
Support levels:
S1 - 139.1
S2 - 138.4
S3 - 138
Comment:
The RSI is around its neutrality area.
