GBP/JPY is expected to consolidate with bearish bias. It is undermined by the uncertainty over Greece and Japan's exports. But GBP/JPY losses are tempered by the demand from Japanese importers. Sterling sentiment is hurt by a surprising 0.6% drop on-month in May's manufacturing output in the UK (versus forecast +0.2%).

Technical comment:

The daily chart is negative-biased as the MACD and stochastics are bearish, five and and 15-day moving averages are declining.

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 186.40. A break of that target will move the pair further downwards to 185.50. The pivot point stands at 188.50. 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 189.75 and the second target at 190.60.

Resistance levels: 189.75 190.60 191.35

Support levels: 186.40 185.50 185