GBP/JPY is expected to consolidate with a bullish bias. GBP/JPY is underpinned by the buoyant GBP/USD undertone and demand from Japan’s importers. But GBP/JPY gains are tempered by Japan’s export sales and increased investor risk aversion as well as positions adjustment ahead of Japan’s long weekend.
The daily chart is positive-biased as MACD and stochastics are bullish, although the latter is at the overbought levels, five-day moving average is above 15-day moving average and is advancing.
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 185 and the second target at 186.20. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.60. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.75. The pivot point is at 182.40.
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