04.04.201414:02 Forex Analysis & Reviews: Technical analysis of GBPJPY for April 4, 2014

Overview:

GBP/JPY is expected to consolidate with bearish bias as markets await U.S. non-farm payrolls report. GBP/JPY is undermined by the weak euro sentiment, diminished risk appetite and Japan exporter sales. But EUR/JPY losses are tempered by the demand from Japan importers and loose Bank of Japan monetary policy and positions adjustment before weekend. Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day MA and is advancing, but stochastics is turning bearish at overbought zone.

Trading recommendation:
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 171.65. A breach of this target will move the pair further downwards to 170.90. The pivot point stands at 172.70. In case the price moves in the opposite direction and bounces back from support level, and then it 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 173.15 and the second target at 173.60.

Resistance levels:
173.15
173.60
174.20

Support levels:
171.65
170.90
170.30