GBP/JPY is expected to trade with bullish bias. It is undermined by the continued uncertainty over Greece. But sterling sentiment is soothed by the narrower-than-expected UK May global goods trade deficit of GBP 8.0 billion (versus forecast GBP 9.8 billion). The pair is also undermined by the decreased risk tolerance as uncertainty over Greece lingers.
Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is turned bullish at oversold levels.
Trading recommendations:
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 192.35 and the second target at 193.20. In the alternative scenario, short positions are recommended with the first target at 189.40 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 188.80. The pivot point is at 190.55.
Resistance levels: 192.35 193.20 194
Support levels: 189.40 188.80 188
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