Overview:

GBP/JPY is expected to consolidate in higher range as markets await the FOMC announcement. GBP/JPY is weighed by the weak euro sentiment after softer-than-expected German inflation data and Japan's exports sales. But GBP/JPY losses are tempered by the demand from the Japanese importers and positive risk sentiment. Daily chart is still positive-biased as MACD and stochastics are in bullish mode, 5-day moving average is above 15-day MA and is advancing.

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 172.80 and the second target at 171.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.40. A breach of this target will push the pair further downwards and one may expect the second target at 171. The pivot point is at 171.75.

Resistance levels:
172.80
173.15
173.65

Support levels:
171.40
171
170.50