Overview:

GBP/JPY is expected to trade in a lower range.It is supported by the positive investor risk appetite, improved euro sentiment and demand from the Japanese importers. But GBP/JPY gains are tempered by the Japan exporter sales. Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average is rising above 15-day MA.

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 172.55. A breach of this target will move the pair further downwards to 171.85. The pivot point stands at 173.40. In case the price moves in the opposite direction and bounces back from the support level, and then it 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 173.85 and the second target at 174.25.

Resistance levels:
173.85
174.25
174.75

Support levels:
172.55
171.85
171.15