GBP/JPY is expected to trade in a higher range. It is underpinned by the improved euro sentiment as Greece worries subside and reduced safe-haven appeal of the yen amid better investor risk appetite and demand from Japan’s importers. But GBP/JPY gains are tempered by the Japanese exports.
The daily chart is mixed as the MACD is bearish, but stochastics is turned bullish at oversold levels.
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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