Overview:
GBP/JPY is trading with bearish bias. The rate is undermined by weak euro sentiment; Japan exporter sales. But GBP/JPY losses tempered by euro demand from Japan importers; expectations of aggressive monetary easing from BOJ in coming months to achieve 2% inflation target. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Monday; MACD and stochastics are in bearish mode; five-day moving average is below 15-day MA and falling.
Recommendation:
Sell below 143.7 with downside targets at 142.2 and 141.85.
Support levels:
S1 - 142.2
S2 - 141.85
S3 - 141.35
Alternative scenario:
Buy above 143.7 with upside targets at 144.25 and 144.75.
Resistance levels:
R1 - 144.25
R2 - 144.75
R3 - 145
