Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias.It is undermined by the negative euro sentiment due to the large-scale ECB quantitative easing measures and fears over eventual Greece exit from the eurozone because the anti-austerity Syriza party leads in national elections on Sunday. The pair is also weakened by flows to the haven yen amid increased investor risk aversion and the Japanese exports. But GBP/JPY losses are tempered by the demand from Japan's importers.
Technical comment:
The daily chart is 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 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 176.45. A break of this target will move the pair further downward to 175.75. The pivot point stands at 178.85. 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 179.45 and the second target at 180.15.
Resistance levels:
179.45
180.15
180.90
Support levels:
176.45
175.75
175
