Overview:
GBP/JPY is expected to trade in lower range. It is buoyed by the positive investor risk appetite, demand from Japan importers and loose BOJ's monetary policy. But GBP/JPY gains are tempered by the Japan exporter sales and caution before Wednesday's Federal Reserve monetary policy decision. Daily chart is mixed as positive MACD histogram bars are contracting, but stochastics is turning neutral.

Trading recommendation:
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 167.70. A breach of this target will move the pair further downwards to 167.10. The pivot point stands at 169.60. In case the price moves in the opposite direction, bounces back from support level, and then 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 170 and the second target at 170.50.

Resistance levels:
170
170.50
171.10

Support levels:
167.70
167.10
166.20