Fundamental overview:
GBP/JPY is expected to trade with risks skewed lower. It is undermined by the worries over Greece, increased investor risk aversion, and Japan's export sales. But GBP/JPY losses are tempered by the demand from Japan's importers. The daily chart is still positive-biased as MACD and stochastics are in a bullish mode.
Technical comment:
The daily chart is still positive-biased as MACD and stochastics are in a bullish mode.
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 179.20. A break of this target will move the pair further downward to 178.50. The pivot point stands at 181.10. 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 181.80 and the second target at 182.65.
Resistance levels:
181.80
182.65
183.35
Support levels:
179.20
178.50
177.70
