Overview:

GBP/JPY is expected to consolidate after hitting a three-day high 140.78 on Wednesday. GBP/JPY is undermined by the subdued investor risk appetite and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan importers and loose BOJ's monetary policy. Daily chart is turnting positive as MACD is in bullish mode and stochastics is turning bullish.

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 172.76 and the second target at 173.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.50. A breach of this target will push the pair further downwards and one may expect the second target at 169.75. The pivot point is at 170.90.

Resistance levels:
172.76
173.60
174.15

Support levels:
170.50
169.75
168