Fundamental overview:
GBP/JPY is expected to trade in a higher range. It is undermined by the negative EUR sentiment as uncertainty mounts over the plans of Greece's new government to renegotiate the country's debt with international creditors. The pair is also weakened by flows to the safe haven yen amid increased risk aversion 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 bearish outside-day-range pattern was completed on Wednesday, the MACD bearish, 5- & 15-day moving averages are falling but stochastics bullish is at oversold levels.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 1179.45 and the second target at 180.15. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 177.15. A break of this target would push the pair further downwards and one may expect the second target at 176.45. The pivot point is at 177.85.
Resistance levels:
179.45
180.15
180.90
Support levels:
177.15
176.45
175.75
