Fundamental outlook: GBP/JPY is expected to trade in a higher range. It is underpinned by the firmer GBP/USD undertone and demand from Japanese importers. But GBP/JPY gains are tempered by Japan's exports, lingering concern over Greece, and increased investor risk aversion.
Technical comment: The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels, five-day moving average is above 15-day moving average and is advancing.
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 189.70. A break of that target will move the pair further downwards to 189.10. The pivot point stands at 190.90. 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 191.50 and the second target at 192.
Resistance levels: 191.50 192 192.70
Support levels: 189.70 189.10 188.60
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