Overview: GBP/JPY is trading with bearish bias after hitting six-day high. The rate is underpinned by weak JPY sentiment after leaders of G-20 nations endorsed Japan’s aggressive bond purchase program; euro demand from Japan importers; improved investor risk appetite. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD is bullish, stochastics has reverted to bullish mode at overbought; five- and 15-day moving averages are rising.
Trading recommendations: The pair is trading below its pivot point at 151.92. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 151.2 in view, breach of this target will further move the pair downward and expect the second target at 150.5. Pivot point stands at 152.5. In case the price moves in opposite direction and returns from its support and moves above its pivot point then it will be most favorably to trade in higher range and buy position is recommended above its pivot with first target at 152.85 and second target at 153.6.
Overview:
GBP/JPY is trading with bearish bias after hitting six-day high. The rate is underpinned by weak JPY sentiment after leaders of G-20 nations endorsed Japan’s aggressive bond purchase program; euro demand from Japan importers; improved investor risk appetite. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD is bullish, stochastics has reverted to bullish mode at overbought; five- and 15-day moving averages are rising.
Trading recommendations:
The pair is trading below its pivot point at 151.92. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 151.2 in view, breach of this target will further move the pair downward and expect the second target at 150.5. Pivot point stands at 152.5. In case the price moves in opposite direction and returns from its support and moves above its pivot point then it will be most favorably to trade in higher range and buy position is recommended above its pivot with first target at 152.85 and second target at 153.6.
Resistance and Support levels:
R1 – 152.85, R2 – 153.6, R3 – 154.35
S1 – 151.2, S2 – 150.5, S3 – 151
The material has been provided by InstaForex Company – www.instaforex.com
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