Fundamental outlook: GBP/JPY is expected to trade with a bearish bias. It is undermined by weak euro sentiment on concerns over Greek and Japanese exports. But GBP/JPY losses are tempered by demand from Japanese importers.
Technical comment: The daily chart is mixed as the MACD is bullish, five-day moving average is above 15-day moving average and is advancing but stochastics is bearish at overbought levels.
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 192 and the second target at 192.70. In the alternative scenario, short positions are recommended with the first target at 189.70 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 189.10. The pivot point is at 190.5.
Resistance levels: 192 192.70 192
Support levels: 189.70 189.10 188.60
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