Fundamental overview:
GBP/JPY is expected to consolidate in a higher range as markets await the U.S. FOMC interest rate decision. GBP/JPY is supported by the improved euro sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by the flows to haven yen amid increased risk aversion and the Japanese exporters.
Technical comment:
The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling, but stochastics is turned bullish at oversold levels.
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 1179.45 and the second target at 180.15. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 177.15. A break of this target would push the pair further downwards and one may expect the second target at 176.45. The pivot point is at 177.85.
Resistance levels:
179.45
180.15
180.90
Support levels:
177.15
176.45
175.75
