Overview:

GBP/JPY is expected to trade with bearish bias. It is undermined by the increased investor risk aversion and Japan exporter sales, and speculation that the European Central Bank might ease monetary policy at its meeting next week. But EUR/JPY losses are tempered by the demand from Japan importers and loose BOJ's monetary policy. Daily chart is mixed as MACD is bullish, but stochastics is bearish in overbought zone.

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 169. A breach of this target will move the pair further downwards to 168.35. The pivot point stands at 170.3. In case the price moves in the opposite direction, bounces back from support level, and then 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 170.8 and the second target at 171.2.

Resistance levels:
170.8
171.2
171.6

Support levels:
169
168.35
167.9