FX.co ★ Technical analysis of GBP/JPY for Sep 18, 2014

Fundamental Overview:

GBP/JPY is expected to consolidate with bullish bias. Supported by buoyant USD/JPY undertone and demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales and GBP/USD by GBP demand on soft EUR/GBP cross and on buoyant GBP/JPY cross. U.K. employment data released on Wednesday were mixed as bigger-than-expected drop in U.K. jobless rate to near-six-year low of 6.2% in the three months to July from 6.4% in the three months to June (versus forecast 6.3%) offsets larger-than-expected 37,200 drop in U.K. August jobless claimant count (versus forecast 32,000). 

Technical Comment: 
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated 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 175.65 and the second target at 179.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 175.20. A break of this target would push the pair further downwards and one may expect the second target at 174.455. The pivot point is at 175.80.

Resistance levels: 
178.65
179.40
180
Support levels: 
175.20
174.45
174