GBP/JPY is expected to consolidate with a bullish bias. It is supported by the positive risk sentiment and demand from Japan’s importers. But GBP/JPY gains are tempered by Japan’s export sales. GBP sentiment is dented by Bank of England/GfK NOP quarterly inflation attitudes survey showing respondents expecting interest rates to rise over the next 12 months slipped to 37% in November from 49% in August.
Daily chart is positive-biased as stochastics is bullish, five and 15-day moving averages are advancing.
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 189.70 and the second target at 190.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 187.50. A break of this target would push the pair further downwards and one may expect the second target at 186.80. The pivot point is at 188.25.
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