Technical analysis of GBP/JPY for March 05, 2015
GBP/JPY is expected to confirm bearish movement after hitting a one-month low of 132.40 on EBS on Wednesday. It is undermined by the soft EUR/USD sign, declined investor risk tolerance and Japan’s exports. But the GBP/JPY losses are raged by demand from the Japanese importers.
The daily chart is clearly negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, and five-day moving average is below 15-day moving average and is declining.
The pair is now trading below its pivot point. It is probable to trade in a lower range as far as it remains below the pivot point. Short positions are suggested with the first target at 182.50. A break of that target will move the pair more downwards to 182.10.
The pivot point positions at 183.65. In-case the price moves in the reverse direction and bounces back from the support level, it will move above its pivot point.
It is expected to move further to the upside. According to that condition, a long position is recommended with the first target at 184.15 and the second target at 184.40.