Fundamental outlook: GBP/JPY is expected to consolidate with bullish bias markets ahead of 11:00 GMT Bank of England interest rate announcement: the BOE is expected to maintain its interest rate at record low of 0.5% and its asset purchase program at GBP375 billion. It is underpinned by positive GBP sentiment and demand from Japanese importers. But GBP/JPY gains are tempered by Japan's exports.
Technical comment: The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels. Five- and 15-day moving averages are advancing.
Trading recommendations: 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 191.70 and the second target at 192. In the alternative scenario, short positions are recommended with the first target at 189.70 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 189.10. The pivot point is at 190.15.
Resistance levels: 191.70 192 192.35
Support levels: 189.70 189.10 188.60
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