Overview:

GBP/JPY is expected to trade with a bearish bias. The movement is weighed by the increasing investors' risk aversion, the weak euro sentiment, and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers. The daily chart is negative-biased as MACD is bearish, the stochastics stays suppressed in the oversold zone; five and 15-day moving averages are declining.

Trading recommendations:
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 172.55. A break of this target will move the pair further downwards to 172.35. The pivot point stands at 173.35. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 173.75 and the second target at 174.10.

Resistance levels:
173.75
174.10
174.45

Support levels:
172.55
172.35
171.90