GBP/JPY is expected to consolidate in a higher range as markets are awaiting the US non-farm payrolls report. GBP/JPY is supported by the stronger GBP/USD undertone and Japan export sales. But GBP/JPY losses are tempered by the demand from Japan importers, diminished risk aversion, and positions adjustment ahead of the weekend.
The daily chart is mixed as the MACD is bullish, but stochastic is turning bearish at overbought levels. Bearish dark-cloud-cover candlestick pattern was completed on Thursday.
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 186.55 and the second target at 187.30. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 183. A break of this target is likely to push the pair further downwards, and one may expect the second target at 182.40. The pivot point is at 183.80.
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