GBP/JPY is expected to consolidate with bullish bias, tracking movements in GBP/USD. Sterling sentiment is boosted after Bank of England Governor Carney said, «The point at which interest rates may begin to rise is moving closer given the performance of the economy.» Meanwhile BOE’s David Miles said the central bank should begin raising interest rates in the UK soon in order to keep future increases in borrowing costs smooth and steady.
The daily chart is mixed as the MACD is bearish, but stochastics is in bullish mode.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 194 and the second target at 194.70. In the alternative scenario, short positions are recommended with the first target at 191.50 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 190.65. The pivot point is at 192.35.
Resistance levels: 194 194.70 195.50
Support levels: 191.50 190.65 190
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