Overview:
GBP/JPY rebounds after consolidating for quite some time. The rate is undermined by decreased risk appetite; Japan exporter sales. But GBP/JPY downside limited by Bank of Japan's aggressive monetary easing stance; demand from Japan importers. Daily chart is still positive-biased as MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and rising.
Recommendation:
Buy above the pivot point 142.55 with upside targets at 143.75 and 144.15.
Resistance levels:
R1 - 143.75
R2 - 144.15
R3 - 144.65
Alternative scenario:
Sell below 142.55 with targets at 142.14 and 141.5.
Support levels:
S1 - 142.14
S2 - 141.4
S3 - 140.75
