Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias after hitting a 20-month low of 126.91 on Friday. GBP/JPY is undermined by negative investor risk sentiment, the weak EUR/USD undertone and Japan's exports. The GBP/JPY losses are tempered by demand from the Japanese importers.

Technical comment:
The daily chart is negative-biased, stochastics stays suppressed at oversold levels as the MACD is bearish. Five- and 15-day moving averages are 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 the pivot point. Short positions are recommended with the first target at 178. A break of that target will move the pair further downwards to 177.25. The pivot point stands at 180.15. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 180.80 and the second target at 181.75.

Resistance levels:
180.80
181.75
182.35
Support levels:
178
177.25
176.75