FX.co ★ Technical analysis of GBP/JPY for April 23, 2015

Fundamental overview:

GBP/JPY is expected to consolidate with bullish bias. Sterling sentiment is boosted after the less-dovish minutes of the UK Bank of England MPC meeting were released. It is also supported by positive risk sentiment, buoyant USD/JPY undertone, and demand from Japan importers. But the EUR/JPY pair's gains tempered by Japan export sales.

Technical comment:
The daily chart is positive-biased as the MACD and stochastic are bullish.

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 180.70 and the second target at 181.20. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 178.45. A break of this target is likely to push the pair further downwards, and one may expect the second target at 178.05. The pivot point is at 178.90.

Resistance levels:
180.70
181.20
181.65
Support levels:
178.45
178.05
177.55