FX.co ★ Technical analysis of GBP/JPY for May 29, 2015

Fundamental outlook: GBP/JPY is expected to trade in a higher range. It is underpinned by the improved euro sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports and positions adjustment ahead of the weekend.

Technical comment: The daily chart is mixed as the MACD is bearish, but stochastics is rising from 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 190 and the second target at 190.60. In the alternative scenario, short positions are recommended with the first target at 188.60 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 187.80. The pivot point is at 190.05.

Resistance levels: 190.60 191.20 191.75

Support levels: 188.60 187.80 187