Fundamental overview:
GBP/JPY is expected to trade with bearish bias. It is undermined by the diminished risk appetite as caution prevails ahead of the outcome of the meeting between the new Greek government and the eurozone finance ministers in Brussels on Monday. GBP/JPY is also weighed by the soft USD/JPY undertone and Japan's exports. But GBP/JPY losses are tempered by the demand from the Japanese importers.
Technical comment:
The daily chart is mixed as the MACD is bullish, five-day moving average is above 15-day moving average and is advancing but stochastics is turning bearish at overbought levels.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 181.60. A break of this target will move the pair further downward to 180.90. The pivot point stands at 183.35. 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, a long position is recommended with the first target at 182.30 and the second target at 181.60.
Resistance levels:
184.30
185.20
184.75
Support levels:
181.60
180.90
180.45
The material has been provided by InstaForex Company - www.instaforex.com
