GBP/JPY is expected to trade in a lower range. It is undermined by the weak EUR/USD undertone, diminished investor risk appetite and Japan’s exports. But the GBP/JPY losses are tempered by demand from the Japanese importers and positions adjustment ahead of the weekend.
The daily chart is tilting negative as bearish outside-day-range pattern was completed on Thursday, stochastics is bearish, the positive MACD histogram bars are contracting and five-day moving average falling below 15-day moving average.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 183.35. A break of this target will move the pair further downward to 182.90. The pivot point stands at 184.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 185.05 and the second target at 185.70.
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