FX.co ★ Technical analysis of GBP/JPY for Sep 19, 2014

Fundamental Overview:

GBP/JPY is expected to consolidate with bearish bias.It is supported by buoyant USD/JPY undertone and demand from Japan importers. GBP Loss is tempered by GBP demand on soft EUR/GBP cross, GBP demand on buoyant GBP/JPY cross amid positive risk sentiment. But GBP sentiment are dented by the  weaker-than-expected 0.4% on-month and +3.9% on-year increase in U.K. August retail sales (versus forecast +0.6% on-month, +4.2% on-year)But GBP/JPY gains are tempered by the Japan exporter sales and positions adjustment before weekend. 

Technical Comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, five-day moving average is above 15-day MA and is advancing.  

Trading recommendations:
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 176.75. A break of this target will move the pair further downwards to 175.80. The pivot point stands at 179.10. In case the price moves in the opposite direction and bounces back from the support level, then it will moves 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 180.75 and the second target at 181.30.   

Resistance levels:
180.75
181.30
182.10
Support levels:  
176.75
175.80
175.05