Overview:

GBP/JPY is expected to trade in lower range. It is undermined by the diminished risk appetite and Japan export sales. But GBP/JPY losses are tempered by the demand from Japan importers and positions adjustment before the weekend. The Daily chart is negative-biased as a bearish outside-day-range pattern was completed on Thursday; five-day moving average is falling below 15-day MA; stochastics is in the bearish mode and MACD is turned bearish.

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 171.75. A breach of this target will move the pair further downwards to 171.40. The pivot point stands at 172.50. 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 173 and the second target at 0.8805173.30.

Resistance levels:
173
173.30
173.50

Support levels:
171.75
171.40
171