GBP/JPY is going to trade with bearish bias. It is undermined by the ongoing Greece’s crisis and Japan’s exports. But GBP/JPY losses are tempered by the demand from the Japanese importers. But the sterling sentiment is soothed by stronger-than-expected UK Q1 final GDP growth of 2.9% on year (versus forecast for +2.5%).
The daily chart is mixed as the MACD is bearish, five-day moving average is below 15-day moving average and is declining but stochastics is in a bullish mode.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 191.30. A break of that target will move the pair further downwards to 190.65. The pivot point stands at 193.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 194.65 and the second target at 195.30.
Resistance levels: 194.65 195.30 196
Support levels: 191.30 190.65 190
The material has been provided by InstaForex Company – www.instaforex.com