Exports results could make Yen third major to gain against the GBP.

Sterling hit session lows against the dollar and the euro on Friday after another housing survey showed the first annual fall in property prices in around a decade, boosting expectations for interest rate cuts.

The Halifax house price survey showed prices in the three months to April falling 0.9 percent versus a year ago. Consensus forecast was for a 0.8 percent fall.

Despite deepening global economic troubles and financial market turbulence, Japan's economy likely expanded 0.6 percent, or an annualised 2.5 percent, in the first quarter supported by firm external demand and consumption, analysts said on Friday. But they said the world's second-largest economy may lose steam in the second quarter as a deepening slowdown in the United States spreads to other parts of the global economy and impacts Japan's exports.

The following technical analysis gives us a detailed lookout on what is expected to happen to GBP/JPY.

The buying point is at 207.66; based on a break of a downtrend line and failure to make a lower low.

Strong resistance is the take profit at 208.55
Fibonacci 23.6% is the stop loss at 205.75
The selling point is at 205.50; based on a break of a strong support level.

Previous support is the take profit at 204.45
Fibonacci 38.2% is the stop loss at 206.31
To strengthen our analysis; we use many indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line with a break of the zero level. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in an uptrend.

The momentum oscillator is very important to understand the strength of the market and as we see on the graph is in a bullish direction. ROC 7 periods gives us a good entry point in the market. The Stochastic oscillator bounced on 20% line and continues to go higher.

* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.