Fundamental overview:
GBP/JPY is expected to trade in a higher range. GBP/JPY is underpinned by the polls showing Conservatives leading Labour ahead of the UK general election scheduked for the next month and sterling demand on soft EUR/GBP cross. But sterling sentiment is dented by the weaker-than-expected rise in the UK CBI industrial order book balance to +1 in April from zero in March (versus forecast +4). It is also supported by the improved euro sentiment and demand from Japan importers.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, five-day moving average is above 15-day moving average and is advancing, although the inside-day-range pattern was completed on Monday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 182.70 and the second target at 183.25. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 181.15. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.50. The pivot point is at 181.60.
Resistance levels:
182.70
183.25
184
Support levels:
181.15
180.50
180