GBP/JPY is expected to consolidate with bearish bias as the market awaits the Federal Reserve interest rate decision. GBP/JPY is undermined by the increased risk aversion and Japan’s export sales. But GBP/JPY losses are tempered by the demand from the Japanese import.
The daily chart is negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
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 185 and the second target at 186.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 182.05. A break of this target would push the pair further downwards and one may expect the second target at 181.05. The pivot point is at 183.
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