Overview:
GBP/JPY is trading in higher range. The rate is underpinned by improved euro sentiment as Cyprus worries wane; stronger investor risk tolerance; demand from Japan importers; expectations of aggressive monetary easing by Bank of Japan to achieve 2% inflation target. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is still negative-biased as MACD and stochastics are in bearish mode.
Recommendation:
Buy above 144.06 with upside targets at 145.4 and 145.9.
Resistance levels:
R1 - 145.4
R2 - 145.9
R3 - 146.25
Alternative scenario:
Sell below 144.06 with downside targets at 143.7 and 143.
Support levels:
S1 - 143.7
S2 - 143
S3 - 142.5
