Overview:
GBP/JPY is trading with risks skewed higher. The rate is underpinned by positive investor risk appetite and expectations of more quantitative easing from BOJ in coming months to achieve 2% inflation target; demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales; caution ahead of tomorrow's European Central Bank's interest rate decision. Daily chart is mixed as MACD is bearish; but stochastics is rising from oversold.
Recommendation:
Sell below the pivot point 141.45 with first target at 140.5 and second target at 140.15.
Support levels:
S1 - 140.5
S2 - 140.15
S3 - 139.75
Alternative scenario:
Buy above 141.45 with upward movement in sight, with first target at 142 and second target at 142.6.
Resistance levels:
R1 - 141.99
R2 - 142.6
R3 - 143
