GBP/JPY is expected to consolidate with a bearish bias as markets await the OMC policy decision. GBP/JPY is undermined by the fears that Greece might default on its debts and exit the eurozone. GBP/JPY is also weighed by the Japan exporter sales. But GBP/JPY losses are tempered by demand from Japanese importers.

Technical comment:

The daily chart is negative-biased as the MACD and stochastics are bearish.

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 196.10 and the second target at 197. In the alternative scenario, short positions are recommended with the first target at 192.60 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 192. The pivot point is at 193.20.

Resistance levels: 196.10 197.10 198

Support levels: 192.60 192 191.40