Overview:

GBP/JPY is expected to trade in a lower range. It is undermined by the reduced investor risk tolerance, Japan exporter sales and weak euro sentiment. But GBP/JPY losses are tempered by the demand from Japan importers. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone.

Trading recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 169.40. A breach of this target will move the pair further downwards to 169.10. The pivot point stands at 170.25. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 170.60 and the second target at 170.95.

Resistance levels:
170.60
170.95
171.45
Support levels:
169.40
169.10
168.50