Overview:

GBP/JPY is expected to trade in a lower range. It is supported by the positive risk sentiment and demand from Japanese importers. But GBP/JPY gains are tempered by Japanese export sales. The daily chart is mixed as stochastics is bearish, but MACD is in the bullish mode.

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 173.75. A break of this target will move the pair further downwards to 173.35. 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:
173.75
173.35
172.85