GBPJPY: Bullish bias

Overview:
GBP/JPY is consolidating with bullish bias. The rate is underpinned by strong investor risk appetite; positive GBP sentiment and aggressive BOJ monetary easing stance as demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD and stochastic are bullish, although latter is at overbought; five- and 15-day moving averages are rising.
Corrective weakness from Friday’s 126.97 high would attract strong support above 146.65. A retest of the 148 high is expected in the coming sessions once a base above 146.6 has been forged, and the powerful GBP uptrend has room for a push higher towards the 147area, longer term. Only a break below 144.75 would create room for additional corrective weakness towards 144.25 and 143.35.

Preference: 
Buy above 144.75 with targets at 146.65 and 147.3 in extension.
Resistance levels:
R1 – 146.65
R2 – 147.3
R3 – 147.9
Alternative scenario: 
Sell below 144.75. Below 144.75 look for further downside with 144.25 and 143.35 as targets.
S1 – 144.25
S2 – 143.35
S3 – 142.75
Technical comment: 
The RSI calls for a new upleg. 

The material has been provided by Instaforex Company – http://www.instaforex.com/

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