Overview:

GBP/JPY is expected to consolidate with bullish bias. It is supported by the positive risk appetite, weak yen sentiment as well as demand from Japan importers and loose monetary policy of the Bank of Japan. But the GBP/JPY gains are tempered by the Japan's exports. Daily chart is positive-biased as stochastics is bullish and MACD is staging bullish crossover against its exponential moving average, bullish parabolic stop-and-reverse signal hit on Tuesday.

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 172.90 and the second target at 173.60. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 170.90. A breach of this target will push the pair further downwards and one may expect the second target at 170.30. The pivot point is at 171.65.

Resistance levels:
172.90
173.60
174.20

Support levels:
170.90
170.30
169.60