GBP/JPY is expected to consolidate with a bearish bias. It is supported by the buoyant EUR/USD and demand from Japan’s importers. But GBP/JPY upside is limited by Japan’s export sales and softer USD/JPY undertone. GBP/JPY downside movement is tempered by the soothed sterling sentiment as revised U.K. 3Q GDP came in at +0.7% on-quarter and +3.0% on-year, matching forecasts.
Daily chart is mixed as MACD is bullish but stochastics is bearish near the overbought levels.
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 184.65. A break of this target will move the pair further downwards to 184. The pivot point stands at 185.75. 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 186.3 and the second target at 186.75.
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