Overview:
GBP/JPY is trading with bullish bias. The rate is undermined by increased investor risk aversion as worries mount over Spain and Italy; Japan exporter sales. But GBP/JPY losses tempered by aggressive BOJ monetary easing stance; demand from Japan importers. Daily chart is mixed as MACD is bullish, 5- and 15-day moving averages are rising; but stochastic turned bearish at overbought.
Preference:
Buy above 144.85 with targets at 147.3 and 147.9 in extension.
Resistance levels:
R1 - 147.3
R2 - 147.9
R3 - 148.25
Alternative scenario:
Sell below 144.85. Below 144.85 look for further downside with 144.25 & 143.35 as targets.
Support levels:
S1 - 144.25
S2 - 143.35
S3 - 142.75
Technical comment:
The RSI is bullish and calls for further advance.