Overview:

GBP/JPY is expected to consolidate with bullish bias. It is supported by the positive investor risk appetite and demand from the Japanese importers. But GBP/JPY gains are tempered by Japan's export sales and positions adjustment as caution sets in ahead of European Central Bank's interest rate decision and U.S. non-farm payrolls report on Thursday. Daily chart is mixed as MACD and stochastics are in bullish mode but five- and 15-day moving averages are still meandering sideways.

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 175 and the second target at 175.50. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 173.30. A breach of this target would push the pair further downwards and one may expect the second target at 172.90. The pivot point is at 173.70.

Resistance levels:
175
175.40
175.80

Support levels:
173.30
172.90
172.35