Fundamental overview:
GBP/JPY is expected to consolidate with bullish bias. GBP/JPY is undermined by the flows to haven the yen amid increased investor risk aversion, soft EUR/USD undertone, and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers.
Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, a five-day moving average is below a 15-day moving average and is declining.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as far as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 178.25 and the second target at 178.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 177.15. A break of this target is likely to push the pair further downwards, and one may expect the second target at 176.85. The pivot point is at 177.45.
Resistance levels:
178.25
178.60
179.30
Support levels:
176.85
176.45
176
