Overview:

GBP/JPY is expected to consolidate after hitting its one-week low at 141.12 on Monday. It is supported by the improved euro sentiment and demand from the Japanese importers. But GBP/JPY upside is limited by the increased investor risk aversion and Japan's exports sales. Daily chart is still negative-biased as MACD and stochastics are in bearish mode.

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 170.30. A breach of this target will move the pair further downwards to 169.50. The pivot point stands at 172.00. 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 172.75 and the second target at 173.15.

Resistance levels:
172.75
173.15
173.60

Support levels:

170.30
169.50
1697