Overview:

GBP/JPY is expected to trade with bullish bias. It is uUndermined by the reduced investor risk tolerance and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.

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 173.15 and the second target at 173.50. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.75. A breach of this target will push the pair further downwards and one may expect the second target at 171.40. The pivot point is at 172.10.

Resistance levels:
173.15
173.50
173.75

Support levels:
171.75
171.40
171