Overview:

GBP/JPY is expected to consolidate with bullish bias. It is undermined by the negative euro sentiment, subdued investor risk appetite and Japan's exports. But the EUR/JPY losses are tempered by the demand from Japan importers, loose monetary policy of the Bank of Japan and positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.

Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 171.34 and the second target at 171.65. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 169.20. A breach of this target will push the pair further downwards and one may expect the second target at 168.80. The pivot point is at 169.90.

Resistance levels:
171.34
171.65
172

Support levels:
169.20
168.80
168.40