GBP/JPY is expected to consolidate with a bullish bias. It is undermined by the dovish comments from ECB President Draghi and Japan’s export sales. But GBP/JPY downside is limited by the soft yen sentiment and demand from Japan’s importers as well as by sterling demand on retreating EUR/GBP cross.
Daily chart is mixed as MACD indicator is bullish, slow stochastic measure stays elevated at the overbought levels; five and 15-day moving averages are advancing but the bearish shooting-star candlestick pattern was completed on Monday.
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 183.35 and the second target at 183.95. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.05. A break of this target would push the pair further downwards and one may expect the second target at 180.50. The pivot point is at 182.
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