Overview:

GBP/JPY is expected to trade in a lower range.It is undermined by the weak euro sentiment, increased investor risk aversion and Japan's export sales. But GBP/JPY losses are tempered by the demand from the Japanese importers. Daily chart is negative-biased as MACD is bearish; stochastics stays suppressed at oversold zone, five and 15-day moving averages are declining.

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. A short position is recommended with the first target at 165.75 in mind. A breach of this target will move the pair further downwards to 165. The pivot point stands at 168.1. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, it is most favourably expected to move further to the upside. In that scenario, a long position is recommended with the first target at 168.25 and the second target at 169.8.

Resistance levels:
168.25
169.8
170.45

Support levels:
165.75
165
164.35