Fundamental overview:
GBP/JPY is expected to consolidate with a bearish bias. It is undermined by the increased investor risk aversion and Japan's export sales. But GBP/JPY losses are cushioned by the demand from Japan's importers. However, GBP/JPY gains are tempered by the sterling sales on soft GBP/JPY cross amid increased investor risk aversion and sterling sales on buoyant EUR/GBP cross.
Technical comment:
Daily chart is negative-biased as MACD and stochastics are 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 184.65 and the second target at 184. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 187.30. A break of this target would push the pair further downwards and one may expect the second target at 187.85. The pivot point is at 186.45.
Resistance levels:
187.30
187.85
188.35
Support levels:
184.65
184
183.35
The material has been provided by InstaForex Company - www.instaforex.com
