GBP/JPY: Upside

Overview:
GBP/JPY is consolidating with bullish bias after hitting three-year high of 132.26 on Friday. The rate is buoyed by weak yen sentiment on Bank of Japan’s aggressive easing measures to help reach its 2% inflation target; euro demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day MA and advancing. 

Trading recommendations: 
The pair is trading above its pivot point. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, it will be most favorably to trade in higher range and buy position is recommended above its pivot with the first target at 154.2 and the second target at 154.85. You should keep in view short position below the pivot keep of the first target at 151.95, the breach of this target will move the pair downward further and expect the second target at 151.5. The pivot point stands at 152.7.  

Resistance levels:
R1 – 157
R2 – 157.85
R3 – 158.25

Support level:
S1 – 154.9
S2 – 154.1
S3 – 153.65

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