GBP/JPY is expected to trade in a higher range. It is supported by the buoyant GBP/USD undertone despite mounting concerns about Greece and demand from Japanese importers. But GBP/JPY gains are tempered by flows to haven JPY amid increased investor risk aversion and Japan's exports.
Technical comment:
The daily chart is still negative-biased as the MACD and stochastics are bearish.
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 193.30 and the second target at 194. In the alternative scenario, short positions are recommended with the first target at 191.40 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 190.35. The pivot point is at 191.90.
Resistance levels: 193.30 194 194.50
Support levels: 191.40 190.35 189.65
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