Fundamental overview:
GBP/JPY is expected to consolidate in a higher range. It is supported by the increased investor risk appetite and demand from Japan's importers. But GBP/JPY gains are tempered by the weak euro sentiment and Japan's export sales.
Technical comment:
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 176.95. A break of this target will move the pair further downward to 176. The pivot point stands at 178.40. 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 179.60 and the second target at 180.10.
Resistance levels:
179.60
180.10
181
Support levels:
176.95
176
175.15
