Fundamental overview:
GBP/JPY is expected to trade in a higher range. It is supported by the improved euro sentiment as worries over Greece are waning, the positive risk sentiment, and demand from Japan's importers. But EUR/JPY gains are tempered by Japan's export sales. GBP/JPY gains are tempered by the sterling sales on buoyant EUR/GBP cross as well as caution ahead of Bank of England interest rate decision on Thursday.
Technical comment:
Daily chart is positive-biased as MACD and stochastics are in bullish mode, bullish parabolic stop-and-reverse signal hit on Tuesday.
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 0.178.95 and the second target at 179.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 177.20. A break of this target would push the pair further downwards, and one may expect the second target at 176.70. The pivot point is at 177.50.
Resistance levels:
178.95
179.40
1780
Support levels:
177.20
176.70
176
The material has been provided by InstaForex Company - www.instaforex.com
