Technical analysis of GBP/JPY for October 21, 2014 Market Analysis Review

Fundamental overview:

GBP/JPY is expected to consolidate with a bullish bias. It is supported by the buoyant GBP/USD and demand from Japanese importers. But GBP/JPY gains are tempered by Japan's export sales.

Technical comment:
Daily chart is mixed as MACD is in a bearish mode but stochastics rising from oversold.

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 173.05 and the second target at 174. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.20. A break of this target would push the pair further downwards and one may expect the second target at 169.15. The pivot point is at 171.35.

Resistance levels:

173.05

173.35

174

Support levels:

170.20

169.75

169.15

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