Fundamental outlook:
GBP/JPY is expected to consolidate with a bullish bias. It is supported by the positive risk sentiment and demand from Japan importers. But GBP/JPY upside is limited by the Japan export sales, sterling sales on buoyant EUR/GBP cross, and position adjustment ahead of the weekend.
Technical comment:
The daily chart is still positive-biased as tha MACD and stochastics are bullish, although latter is at overbought levels, five- and 15-day moving averages are 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 189.20 and the second target at 189.75. In the alternative scenario, short positions are recommended with the first target at 186.65 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 186. The pivot point is at 187.3.
Resistance levels:
189.20
189.75
190.35
Support levels:
186.65
186
185.25
