Fundamental overview:
GBP/JPY is expecetd to trade with bearish bias. It is undermined by the increased risks of the Greek default, Japan's exports, broadly firmer dollar undertone, and by worries that no clear winner would emerge in the UK general election on May 7. But GBP/JPY losses are tempered by the demand from the Japanese importers.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are in bullish mode.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 177. A break of that target will move the pair further downwards to 176.50. The pivot point stands at 178.20. 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, long positions are recommended with the first target at 178.40 and the second target at 179.10.
Resistance levels:
178.75
179.10
179.65
Support levels:
177
176.50
176
