GBP/JPY is expected to consolidate with bullish bias. It is undermined by the weak euro sentiment amid increased fears of a Greece's default, flows to the safe-haven yen amid increased investor risk aversion, and Japan's exports. But GBP/JPY losses are tempered by the demand from the Japanese importers.
The daily chart is negative-biased as stochastics is falling from overbought levels; the MACD histogram bars are turning negative; bearish parabolic stop-and-reverse signal was hit on Friday.
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 192.50 and the second target at 193.30. In the alternative scenario, short positions are recommended with the first target at 190.05 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 190.75.
Resistance levels: 192.50 193.30 194
Support levels: 190.05 189.10 188.60
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