GBP/JPY is expected to consolidate with bearish bias. It is undermined by the weak euro sentiment, diminished investor risk appetite, and Japan's exports. But GBP/JPY losses are tempered by the demand from the Japanese importers.
The daily chart is negative-biased as the MACD and stochastics are bearish. Five-day moving average is below 15-day moving average and is declining.
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 187.05. A break of that target will move the pair further downwards to 185.90. The pivot point stands at 189.35. 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 190 and the second target at 190.60.
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