Overview:

GBP/JPY is expected to consolidate in lower range. It is undermined by the increasing risk aversion and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers. The daily chart is still positive-biased as MACD and stochastics is in a bullish mode, five-day moving average is above 15-day MA and is advancing.

Trading recommendations:
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 172.30. A break of this target will move the pair further downwards to 171.90. The pivot point stands at 172.95. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 173.35 and the second target at 173.75.

Resistance levels:
173.35
173.75
174.20

Support levels:
172.3
171.90
171.65