Overview:

GBP/JPY is expected to trade in a higher range. It is supported by the buoyant EUR/USD undertone and demand from the Japanese importers. But GBP/JPY gains are tempered by the diminished investor risk appetite and Japan's export sales. Daily chart is mixed as MACD and stochastics are in a bullish mode but five- and 15-day moving averages is meandering sideways.

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 173.45 and the second target at 173.85. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.10. A breach of this target would push the pair further downwards and one may expect the second target at 171.85. The pivot point is at 172.35.

Resistance levels:
174.30
174.85
175.30

Support levels:
172.90
172.35
171.75