FX.co ★ Technical analysis of GBP/JPY for November 07, 2014

Fundamental overview:

GBP/JPY is expected to consolidate in higher range. GBP/JPY is undermined by weak EUR/USD undertone and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers, positive risk sentiment and positions adjustment before weekend. 

Technical comment: 
Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day moving average and advancing but stochastics turned bearish at overbought zone, bearish outside-day-range pattern was completed on Thursday.  

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 183.20 and the second target at 184.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181. A break of this target would push the pair further downwards and one may expect the second target at 179.85. The pivot point is at 181.75.

Resistance levels: 
183.20
184.30
185  
Support levels: 
181
179.85
179