Fundamental overview:
GBP/JPY is expected to consolidate in a lower range. It is supported by the improved euro sentiment, reduced safe-haven appeal of the yen amid diminished risk aversion and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports.
Technical comment:
the daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at the 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 177.15. A break of this target will move the pair further downward to 176.45. The pivot point stands at 179. 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:
177.15
176.45
175.75
