FX.co ★ Technical analysis of GBPJPY for April 24, 2014

Overview:

GBP/JPY is expected to consolidate with bullish bias. It is undermined by the diminished investor risk appetite and Japan's exports. But GBP/JPY downside is limited by the improved euro sentiment on upbeat euro-zone flash PMI data and demand from Japan's importers. Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is rising above 15-day MA.

Trading recommendation:
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 far as the price is above its pivot point, a long position is recommended with the first target at 172.40 and the second target at 172.80. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171. A breach of this target will push the pair further downwards and one may expect the second target at 170.55. The pivot point is at 171.35.

Resistance levels:
172.40
172.80
173.15

Support levels:
171
170.55
170