Fundamental outlook: GBP/JPY is expected to consolidate with bullish bias. It is undermined by the bullish yen sentiment and Japan's exports. But GBP/JPY losses are tempered by the improved euro sentiment amid hopes for a deal between Greece and its creditors, positive investor risk sentiment, and demand from Japanese importers.
Technical comment: The daily chart looks negative as stochastics is turned bearish at overbought levels, positive MACD histogram bars are contracting.
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 192.50. 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 190.50.
Resistance levels: 192 192.50 193
Support levels: 189.70 189.10 188.60
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