The British currency against the yen continues trading in the upward channel. Now the pair is correcting down from the key resistance level and the upper line of the upward channel 196.30.
The downward movement is mainly caused by the price consolidation at the upper line of the channel and negative statistics on UK key indices. Weak statistics on PMI Construction and house price indexes was published last week. Japan, on the contrary, released positive data on Manufacturing and Non-manufacturing Indexes.
The pound is also affected by the situation in Greece. This trading week was opened with a significant drop in UK stock indices amid the referendum results and the uncertainty over Greece's future. The pair GBP/JPY also opened with a small gap down but gained back its positions in few hours. Today, the price dropped down again due to negative statistics on Manufacturing Production in the U.K. and Euro Summit, where the Greek crisis is discussed.
Support and resistance
Currently, several factors negatively affect the pound. On the other hand, the decline is not likely to last long. Having reached the levels 188.05, 186.00, 185.00, 184.00, the price should go up again. The upward trend may also change to sideways or a sloping channel.
Support levels: 189.50, 189.00, 188.05, 185.00, 183.95, 181.30, 180.05.
Resistance Levels: 190.00, 191.75, 194.01, 195.45, 196.90, 197.50.
Build up long positions from the key support levels of 188.00, 185.00, 184.00 with take-profit at local maximum 195.45. Otherwise, use trailing-stop and fix the profit at the possible level of the upper border of the range 198.50, 199.80 Fix the losses if the price breaks through 183.95