GBP/JPY is expected to consolidate with a bearish bias. But EUR/JPY gains are tempered by Japan export sales. It is supported by buoyant EUR/USD undertone and demand from Japan importers. Sterling sentiment is soothed by the stronger-than-expected 3.9% on-month increase in the UK construction output in March (versus forecast +2.5%).
The daily chart is positive-biased as the MACD and stochastics are bullish, although latter is at overbought levels, five- and 15-day moving averages are advancing.
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 187.3. A break of that target will move the pair further downwards to 186.65. The pivot point stands at 188.60. 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 189.20 and the second target at 189.75.
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