Overview:
GBP/JPY is trading with risk skewed lower. The rate is undermined by weak euro sentiment; Japan exporter sales. But GBP/JPY losses tempered by expectations of aggressive monetary easing by Bank of Japan to achieve 2% inflation target; demand from Japan importers. Daily chart is negative-biased as stochastics is falling from overbought; MACD is staging bearish crossover against its exponential moving average.
Recommendation:
Sell below 143.71 with downside targets at 143.16 and 142.66.
Support levels:
S1 - 143.15
S2 - 142.66
S3 - 142
Alternative scenario:
Buy above 143.71 with upside targets at 144.74 and 145.2.
Resistance levels:
R1 - 144.74
R2 - 145.2
R3 - 145.6
