Overview:

GBP/JPY is expected to consolidate with risks skewed higher. It is supported by the improved risk sentiment and buy EUR orders from Japanese importers. But GBP/JPY gains are tempered by the sell-EUR orders from Japanese export sales. The daily chart is negative-biased as MACD and stochastics are bearish, although the latter is nearly oversold; five-day moving average is below 15-day MA and is 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 its pivot point. Short position is recommended with the first target at 172.60. A break of this target will move the pair further downwards to 172.35. The pivot point stands at 173.25. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 173.55 and the second target at 174.10.

Resistance levels:
173.55
174.10
174.55

Support levels:
172.60
172.35
172