Overview:

GBP/JPY is expected to trade in a lower range. It is undermined by the increasing investor risk aversion and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers and adjustment of positions before the weekend. The daily chart is negative-biased as MACD and stochastics are bearish, five 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 far as it remains below its pivot point. Short position is recommended with the first target at 170.70. A break of this target will move the pair further downwards to 170.20. The pivot point stands at 171.65. 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 172 and the second target at 172.65.

Resistance levels:
172
172.65
173

Support levels:
170.70
170.20
169.85