04.12.201416:54 Forex Analysis & Reviews: Technical analysis of GBP/JPY for December 04, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Fundamental overview:

GBP/JPY is expected to consolidate with a bullish bias. GBP/JPY is undermined by the soft euro sentiment and Japan's export sales. But GBP/JPY losses are tempered by the positive investor risk appetite, demand from Japan's importers and buoyant USD/JPY undertone. Sterling sentiment boosted by surprise rise in U.K. CIPS/Markit services PMI to 58.6 in November from October's 56.2 (versus forecast 56.1), U.K. Treasury chief George Osborne in his Autumn Statement on U.K. economic recovery.

Technical comment:
Daily chart is mixed as MACD and stochastics are bearish, but five and 15-day moving averages are still advancing.

Trading recommendations:
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 188.35 and the second target at 188.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 186.90. A break of this target would push the pair further downwards and one may expect the second target at 186.25. The pivot point is at 187.35.

Resistance levels:
188.35
188.90
189.45

Support levels:
186.80
186.25
185.50

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.