EUR/JPY is trading in a range. It is undermined by the weaker USD/JPY undertone and Japan’s export sales. But GBP/JPY downside limited by demand from Japan’s importers and rebounding GBP/USD and improved risk appetite. GBP sentiment is dented by the wider-than-expected U.K. September global goods trade deficit of GBP9.8 billion (versus forecast GBP9.4 billion).
Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day moving average and is advancing but stochastics is bearish in the overbought zone.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 181. A break of this target will move the pair further downwards to 179.85. The pivot point stands at 182.15. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 182.80 and the second target at 183.45.
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