FX.co ★ Technical analysis of GBP/JPY for December 23, 2014

Fundamental overview:
GBP/JPY is expected to consolidate with a bullish bias. GBP/JPY is supported by the positive risk sentiment. But GBP/JPY gains are tempered by the soft GBP/USD undertone.

Technical comment:
Daily chart is mixed as MACD isbearish, but stochastics is bullish at oversold levels.

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 187.70 and the second target at 188.45. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 185.85. A break of this target would push the pair further downward and one may expect the second target at 185.20. The pivot point is at 186.45.

Resistance levels:
187.70
188.45
189.35

Support levels:
185.85
185.20
184.75