Overview:

GBP/JPY is expected to consolidate with bullish a bias. It is underpinned by the positive risk sentiment and demand from Japanese importers. But GBP/JPY gains are tempered by Japanese export sales and the weak EUR/USD undertone. The daily chart is positive-biased as MACD and stochastics are bullish, five day moving average is rising above 15-day MA.

Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 172.45 and the second target at 172.70. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.40. A break of this target would push the pair further downwards and one may expect the second target at 171.15. The pivot point is at 171.65.

Resistance levels:
172.45
172.70
173.30

Support levels:
171.40
171.15
170.75