GBP/JPY is expected to trade in a higher range. It is supported by the steady GBP/USD undertone and demand from Japan's importers. But GBP/JPY upside is limited by the Japanese exports.
The daily chart still is negative-biased as the MACD and stochastics are bearish. Five-day moving average is below 15-day moving average are declining, although inside-day-range pattern was completed on Wednesday.
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 195 and the second target at 195.50. In the alternative scenario, short positions are recommended with the first target at 193.20 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 192.60. The pivot point is at 193.60.
Resistance levels: 195 195.50 196
Support levels: 193.20 192.60 192
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