Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias as markets await the U.S. non-farm payrolls report. GBP/JPY is supported by the positive risk sentiment and demand from Japan importers. But GBP/JPY upside is limited by the weak euro sentiment, Japan exporter sales and positions adjustment ahead of the long weekend in Japan.
Technical comment:
The daily chart is still negative-biased as MACD is bearish, stochastics 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 179.60. A break of this target will move the pair further downward to 179. The pivot point stands at 181. 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 181.70 and the second target at 182.70.
Resistance levels:
181.70
182.70
183.65
Support levels:
179.60
179
177.10
