Fundamental overview:
GBP/JPY is expected to consolidate with a bullish bias. It is supported by the weak yen sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by Japan's exporter sales. Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at the overbought levels, five and 15-day moving averages are advancing.
Technical comment:
Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at the overbought levels, five and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 181.70. A break of this target will move the pair further downwards to 181.05. The pivot point stands at 183.35. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 183.95 and the second target at 184.75.
Resistance levels:
183.95
184.75
185.35
Support levels:
181.70
181.05
180.75
