FX.co ★ Technical analysis of GBP/JPY for Sep 15, 2014

Fundamental Overview:

GBP/JPY is expected to consolidate with bullish bias . Supported by buoyant USD/JPY undertone and improved EUR sentiment.GBP/JPY is undermined by the uncertainty over the Scottish independence referendum--three out of four polls released over the weekend showed that those who would vote against independence were leading ahead of those who would vote for secession. But the fourth poll--a survey of 705 Scots by ICM for The Telegraph--showed 54% of Scots who have made up their minds planned to vote in favor of independence, with 46% intending to vote against. But GBP/JPY is supported by GBP demand on buoyant GBP/JPY, GBP/AUD, GBP/NZD and GBP/CAD crosses.

Technical Comment: 
Daily chart us positive-biased as MACD and stochastics are bullish, although latter is at overbought zone, five-day moving average is above 15-day MA and is advancing.  

Trading recommendations: 
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 174.70 and the second target at 175.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.60. A break of this target would push the pair further downwards and one may expect the second target at 172. The pivot point is at 173.30.

Resistance levels: 
174.70 
175.40 
176 

Support levels: 
172.60 
172 
171.45