Fundamental overview:
GBP/JPY is expected to consolidate with bullish bias.It is supported by the weak yen sentiment and demand from Japan importers. But GBP sentiment is dented by bigger-than-expected drop in CIPS/Markit U.K. construction PMI to a five-month low of 61.4 in October from 64.2 in September (forecast 63.7). GBP/JPY gains are tempered by the Japan exporter sales and receding investor risk appetite.
Technical comment:
Daily chart is positive-biased as MACD and stochastic are bullish, although the latter is at overbought zone, the five-day moving average is above the 15-day moving average and is advancing.
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 183.05 and the second target at 184.05. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 179.00. A break of this target would push the pair further downwards and one may expect the second target at 177.80. The pivot point is at 180.55.
Resistance levels:
183.05
184.05
184.65
Support levels:
179
177.80
177
The material has been provided by InstaForex Company - www.instaforex.com
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