GBP/JP is expected to consolidate with bullish bias. It is supported by the buoyant GBP/USD undertone and demand from Japan’s importers. But GBP/JPY upside is limited by the Japanese exports and positions adjustment ahead of the weekend.
The daily chart is still negative-biased as the MACD and stochastics are in bearish mode, five-day moving average is below 15-day moving average and is declining.
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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