Overview:
GBP/JPY is trading in lower range. The rate is supported by better euro sentiment after strong German ZEW confidence data; demand from Japan importers and investment trusts; positive risk appetite. But GBP/JPY gains tempered by Japan exporter sales; stronger yen sentiment after Finance Minister Aso denied that Tokyo was considering purchasing foreign bonds as part of monetary-easing measures. Daily chart is tilting at negative-biased as MACD and stochastics are in bearish mode; five-day moving average is staging bearish crossover against 15-day MA.
Preference:
Sell below 143.85 with targets at 142.7 and 142.4 in extension.
Support levels:
S1 - 142.7
S2 - 142.4
S3 - 143.7
Alternative scenario:
Buy above 143.85. Above 143.85 look for further upside with 144.7 and 145.1 as targets.
Resistance levels:
R1 - 144.7
R2 - 145.1
R3 - 145.5
Technical comment:
The break below 143.85 is a negative signal that a path to 142.7 was opened.