Overview:
GBP/JPY is consolidating with bullish bias after hitting three-year high on Tuesday. The rate is buoyed by positive investor risk appetite; Bank of Japan's aggressive monetary easing plans; demand from Japan importers. But GBP/JPY gains tempered by profit-taking on yen-shorts; Japan exporter sales. Daily chart is positive-biased as MACD and stochastics is bullish; five-day moving average is above 15-day MA and advancing.
Recommendation:
Buy above 151.5 with upside targets at 153 and 153.55.
Resistance levels:
R1 - 153
R2 - 153.55
R3 - 154
Alternative scenario:
Sell below 151.5 with downside targets at 150.38 and 149.75.
Support levels:
S1 - 150.38
S2 - 149.75
S3 - 149.25