Overview:
GBP/JPY is consolidating with bearish bias after hitting one-month low of 119.95 on Wednesday. The rate is undermined by worries over the euro zone; Japan exporter sales. But GBP/JPY losses tempered by EUR demand from Japan importers; expectations of aggressive monetary easing from BOJ to achieve 2% inflation target. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Wednesday; MACD and stochastics are bearish, although latter is at oversold; five-day moving average is below 15-day MA and declining.
Recommendation:
Sell below 143.2 with downside targets at 141.8 and 141.51.
Support levels:
S1 - 141.81
S2 - 141.51
S3 - 141
Alternative scenario:
Buy above 143.2 with upside targets at 143.8 and 144.15.
Resistance levels:
R1 - 143.8
R2 - 144.15
R3 - 144.65
