GBP/JPY is expected to trade in a higher range. It is underpinned by the positive risk sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports and the fears that Greece might get into default due to its debts and exit the eurozone.
Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is turning bullish.
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 196.10 and the second target at 197.10. 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 194.40.
Resistance levels: 196.10 197.10 198
Support levels: 193.20 192.60 192
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