FX.co ★ Technical analysis of GBP/JPY for Feburary 06, 2015

Fundamental overview:
GBP/JPY is expected to consolidate in a higher range as markets await the U.S. nonfarm payrolls report. GBP/JPY is underpinned by the improved EUR sentiment amid diminished concerns over Greece, positive risk tolerance and demand from Japan's importers. But GBP/JPY gains are tempered by Japan's export sales and position adjustment ahead of the weekend.

Technical comment:
Daily chart is positive-biased as MACD and stochastics are bullish.

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 180.55 and the second target at 180.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 178.50. A break of this target would push the pair further downwards, and one may expect the second target at 177.70. The pivot point is at 179.20.

Resistance levels:
180.55
180.90
181.45

Support levels:
178.50
177.70
177