Fundamental overview:
GBP/JPY is expected to trade with risks skewed downside. It is undermined by the weaker USD/JPY undertone, Japan's export sales and increased risk aversion. But GBP/JPY losses are tempered by the demand from Japan's importers.
Technical comment:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is falling below 15-day moving average.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 184.95. A break of this target will move the pair further downward to 184. The pivot point stands at 187.10. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 187.80 and the second target at 188.40.
Resistance levels:
187.90
188.40
189
Support levels:
184.95
184
183.35
The material has been provided by InstaForex Company - www.instaforex.com
