GBP/JPY is expected to consolidate with bearish bias. It is undermined by the flows to the safe-haven yen amid increased risk aversion.Today, the Bank of England announced its monetary policy decision: the BOE keept its benchmark interest rate at 0.5%. GBP/JPY is weighed by the sterling sales on the buoyant EUR/GBP cross and increased risk aversion.
The daily chart negative-biased as the MACD and stochastics bearish; five- and 15-day moving averages are declining.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 185.50. A break of that target will move the pair further downwards to 184.350. The pivot point stands at 187.45. 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. According to that scenario, long positions are recommended with the first target at 188.2 and the second target at 189.15.
Resistance levels: 188.20 189.15 190
Support levels: 185.50 184.30 183.65
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