Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias after hitting a 1.5-year low of 129.23 on EBS this morning. GBP/JPY is undermined by the soft EUR/USD undertone, heightened investor risk aversion and Japan's exports. The GBP/JPY losses are tempered by demand from the Japanese importers.

Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at the oversold levels. 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 183.65. A break of that target will move the pair further downwards to 184.05. The pivot point stands at 183.20. 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 182.10 and the second target at 181.45.

Resistance levels:
183.65
184.05
184.40
Support levels:
182
181.45
181.15