Fundamental overview:
GBP/JPY is expected to consolidate in a higher range. It is underpinned by reduced allure of haven yen amid improved investor risk appetite and firmer GBP/USD undertone and demand from Japan importers. But GBP/JPY gains are tempered by Japan exporter sales.
Technical comment:
The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling but stochastics is turning bullish at oversold levels.
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 176.65 and the second target at 177.05. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 174.80. A break of this target is likely to push the pair further downwards, and one may expect the second target at 173.90. The pivot point is at 175.50.
Resistance levels:
176.65
177.05
177.50
Support levels:
174.80
173.90
173.15
