Overview:

GBP/JPY is expected to consolidate in a lower range. It is supported by the improved risk sentiment and demand from the Japanese importers. But GBP/JPY gains are tempered by the Japan exporter sales. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining, but stochastics is turning bullish at oversold 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 170.10. A breach of this target will move the pair further downwards to 169.65. The pivot point stands at 171.10. 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 171.80 and the second target at 172.35.

Resistance levels:
171.80
172.35
172.85

Support levels:
170.10
169.65
169.25