Fundamental overview:
GBP/JPY is expected to consolidate as markets are awaiting 1245 GMT European Central Bank monetary policy decision. GBP/JPY is supported by the subdued investor risk aversion and demand from Japan's importers. But GBP/JPY upside is limited by Japan's export sales and weak euro sentiment. Daily chart is mixed as MACD is bearish, but stochastics is bullish at oversold levels.
Technical comment:
The daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are declining.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 180.20 and the second target at 180.90. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 177.60. A break of this target would push the pair further downwards and one may expect the second target at 176.95. The pivot point is at 178.30.
Resistance levels:
180.20
180.90
181.45
Support levels:
177.60
176.95
176
