GBP/JPY is expected to consolidate as markets await the US FOMC interest rate decision. GBP/JPY is supported by demand from Japan’s importers. The GBP/JPY upside is limited by the Japanese exports and diminished investor risk appetite.
The daily chart is mixed as the MACD is bearish, five- and 15-day moving averages are declining, but stochastics is turned bullish at oversold levels.
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 176.35. A break of that target will move the pair further downwards to 180.80. The pivot point stands at 178.55. 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 179.35 and the second target at 180.80.
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