Overview: GBP/JPY is trading with risks skewed lower. The rate is undermined by Japan’s economy minister Akira Amari’s comment suggesting policymakers may now be concerned about consequences if yen continues to weaken; euro sales from Japan exporters. But GBP/JPY downside is limited by Bank of Japan’s aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers. Daily chart is mixed as MACD is bullish, but stochastics is bearish at overbought.
Trading recommendations: 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 155.4 in view, breach of this target will move further the pair downward and you should expect the second target at 155. Pivot point stands at 156.2. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 156.7 and the second target at 157.3.
Overview:
GBP/JPY is trading with risks skewed lower. The rate is undermined by Japan’s economy minister Akira Amari’s comment suggesting policymakers may now be concerned about consequences if yen continues to weaken; euro sales from Japan exporters. But GBP/JPY downside is limited by Bank of Japan’s aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers. Daily chart is mixed as MACD is bullish, but stochastics is bearish at overbought.
Trading recommendations:
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 155.4 in view, breach of this target will move further the pair downward and you should expect the second target at 155. Pivot point stands at 156.2. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 156.7 and the second target at 157.3.
Support levels:
S1 – 155.4
S2 – 155
S3 – 154.5
Resistance levels:
R1 – 156.7
R2 – 157.3
R3 – 157.8
The material has been provided by InstaForex Company – www.instaforex.com
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