Overview:

GBP/JPY is expected to trade with bullish bias. It is undermined by the increased investor risk aversion 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 negative-biased as stochastics is falling from overbought, MACD histogram bars is turning negative.

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 170 and the second target at 170.50. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 167.70. A breach of this target will push the pair further downwards and one may expect the second target at 167.10. The pivot point is at 168.30.

Resistance levels:
170
170.50
171.10

Support levels:
167.70
167.10
166.20