Overview:
GBP/JPY is consolidating in lower range. The rate is underpinned by reduced worries over Cyprus; demand from Japan importers; expectations of aggressive monetary easing measures from BOJ to achieve 2% inflation target. But GBP/JPY gains tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is still negative-biased as 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 141.9 and 141.4.
Support levels:
S1 - 141.9
S2 - 141.4
S3 - 141
Alternative scenario:
Buy above 143.2 with upside targets at 143.75 and 144.2.
Resistance levels:
R1 - 143.85
R2 - 144.2
R3 - 144.65
