GBP/JPY is expected to consolidate with bullish bias. It is undermined by the weak GBP sentiment, increased investor risk aversion, and Japan's exports. But GBP/JPY downside is limited by buoyant USD/JPY undertone and demand from the Japanese importers.
The daily chart is mixed as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining. Bullish outside-day-range pattern was completed on Tuesday.
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 190 and the second target at 190.60. In the alternative scenario, short positions are recommended with the first target at 188.60 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 187.80. The pivot point is at 189.20.
Resistance levels: 190.60 191.20 191.75
Support levels: 188.60 187.80 187
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