GBP/JPY is expected to consolidate with bearish bias after hitting a one-month low of 132.40 on EBS on Wednesday. It is undermined by the soft EUR/USD undertone, decreased investor risk tolerance and Japan's exports. But the GBP/JPY losses are tempered by demand from the Japanese importers.
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five-day moving average is below 15-day moving average and is declining.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 182.50. A break of that target will move the pair further downwards to 182.10. The pivot point stands at 183.65. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 184.15 and the second target at 184.40.
Uitgevoerd door, Analytische expert
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