GBP/JPY is expected to trade in a lower range. It is undermined by the weaker GBP/USD undertone and continued impact from Friday’s weak U.K. April manufacturing PMI data amid uncertainty over outcome of U.K. May 7 general election. But GBP/JPY losses are tempered by the buy-euro orders from Japan’s importers.
The daily chart is mixed as MACD is bullish, 5 and 15-day moving averages are advancing but stochastics is turned bearish at overbought levels.
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 180.75. A break of that target will move the pair further downwards to 180. The pivot point stands at 182.40. 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 183 and the second target at 184.50
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