Fundamental overview:
GBP/JPY is expected to consolidate. GBP/JPY is supported by the improved EUR/USD undertone post ECB's decision and demand from Japan's importers. Bank of England on Thursday kept its benchmark rate at 0.5% and the size of its bond portfolio at GBP375 billion as widely anticipated. But GBP/JPY upside is limited by the diminished investor risk appetite, Japan's export sales and positions adjustment before the weekend. Daily chart is mixed as five and 15 day moving averages are advancing, but MACD is bearish.
Technical comment:
Daily chart is mixed as five and 15-day moving averages are advancing, but MACD is bearish.
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 189.70 and the second target at 190.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 187.35. A break of this target would push the pair further downwards and one may expect the second target at 186.80. The pivot point is at 187.90.
Resistance levels:
189.70
190.40
190.75
Support levels:
187.35
186.80
186.30
The material has been provided by InstaForex Company - www.instaforex.com
