Overview:

GBP/JPY is expected to consolidate with a bearish bias. It is undermined by the weak EUR/USD undertone and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers and the positive risk sentiment. The daily chart is negative-biased as MACD and stochastics are bearish, although the latter is nearly at the oversold zone; five-day moving average is below 15-day MA and is declining.

Trading recommendations:
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 173.20. A break of this target will move the pair further downwards to 172.85. The pivot point stands at 174.10. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 174.55 and the second target at 175.15.

Resistance levels:
174.55
175.15
175.40

Support levels:
173.20
172.85
172.35