Overview:

GBP/JPY is expected to trade in a lower range. It is undermined by the increased investor risk aversion and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers. The daily chart is negative-biased as stochastics is falling from the overbought zone, positive MACD histogram bars are contracting, five-day moving average is falling below 15-day MA.

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 173.35. A break of this target will move the pair further downwards to 172.85. The pivot point stands at 174.55. In case the price moves in the opposite direction and bounces back from the 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 175.15 and the second target at 175.40.

Resistance levels:
175.15
175.40
175.85

Support levels:
173.35
172.85
172.45