Overview:
GBP/JPY is trading with bullish bias. The rate is undermined by weak euro sentiment on news of mandatory Cyprus bank-deposit levy; reduced investor risk tolerance; Japan exporter sales. But EUR/JPY losses tempered by expectations of aggressive monetary easing from Bank of Japan to achieve 2% inflation target; demand from Japan importers. Daily chart is turning negative as stochastics is falling from overbought; MACD is staging bearish crossover against its exponential moving average.
Recommendation:
Buy above 142.65 with upside targets at 144 and 144.7.
Support levels:
S1 - 144.1
S2 - 144.75
S3 - 145.35
Alternative scenario:
Sell below 142.65 and look for downside targets at 142 and 141.45.
Resistance levels:
R1 - 142
R2 - 141.45
R3 - 141
