GBP/JPY: Bearish bias

Overview:
GBP/JPY is trading in lower range. The rate is undermined by increased risk aversion; fears that Japan may not be able to follow through on promises of aggressive monetary easing; the euro sales from Japan exporters. But GBP/JPY losses are tempered by euro demand from Japan importers. Daily chart is negative-biased as MACD and stochastics are in bearish mode; five- and 15-day moving averages are declining.  

Trading recommendation: 
The pair is trading below its pivot point. 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 148.2 in view, breach of this target will move the pair further downward and you should expect the second target at 147.05. Pivot point stands at 149.4. In case the price moves in opposite direction and returns from its support and moves above its pivot point, trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 150.65 and the second target at 151.95.  

Support levels: 
S1 – 148.2 
S2 – 147.05 
S3 – 146.45

Resistance levels: 
R1 – 150.65 
R2 – 151.95 
R3 – 152.65  

The material has been provided by InstaForex Company – www.instaforex.com