Overview:
The GBP/JPY is to consolidate as markets await U.S. non-farm payrolls report. The pair is backed by stronger investor risk sentiment; Bank of Japan's aggressive easing measures to help reach its 2% inflation target; demand from Japan importers. But the GBP/JPY upside limited by weak euro sentiment on prospects of negative euro-zone deposit rates; Japan exporter sales; positions adjustment before weekend. Daily chart mixed as bearish outside-day-range pattern completed Thursday, the MACD in bearish mode but stochastics is neutral.
Trading recommendations:
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favourably to trade in higher range and buy position is recommended above its pivot with the first target at 152.2 and the second target at 152.75. You should keep in view short position below the pivot keep of the first target at 150.35, breach of this target will move the pair downward further and expect the second target at 149.8. The pivot point stands at 151.5
Resistance levels:
R1 - 152.85
R2 - 153.3
R3 - 153.7
Support levels:
S1 - 150.8
S2 - 150.45
S3 - 150
