Fundamental outlook:
GBP/JPY is expected to consolidate with bullish bias. It is supported by the buoyant EUR/USD undertone, positive investor risk appetite and euro buy orders from Japan's importers. But GBP/JPY gains are tempered by euro sell orders from the Japanese exporters.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter one is at overbought levels. Five-day moving average is above 15-day moving average and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long 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 183.85 and the second target at 185. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.15. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.50. The pivot point is at 181.75.
Resistance levels:
183.85
185
185.75
Support levels:
181.15
180.50
180
