Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. GBP/JPY is supported by the reduced safe appeal of yen amid improved investor risk appetite and demand from the Japan importers. But GBP/JPY gains are tempered by the weak EUR sentiment and Japan exporter sales.
Technical comment:
Daily chart is still negative biased as MACD indicator is bearish, slow stochastic measure stays suppressed at oversold levels, five and 15-day moving averages are declining.
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 the pivot point. Short positions are recommended with the first target at 179. A break of this target will move the pair further downward to 177.10. The pivot point stands at 181.70. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 183.65 and the second target at 185.
Resistance levels:
183.65
185
185.70
Support levels:
179
177.10
176.65
