GBP/JPY is expected to consolidate with a bearish bias. It is undermined by the negative euro sentiment after larger-than-expected ECB quantitative easing program and Japan's exports. But GBP/JPY losses are tempered by the reduced safe-haven appeal of the yen amid the positive global risk sentiment and demand from the Japanese importers.

Technical comment:

The pair is taking a breath and is moving sideways. However, as long as the resistance base at 192.45 is not broken down, further downside is expected with the next support set at July 23 bottom at 191.30 and then at 190.95 in extension.

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 191.30. A break of that target will move the pair further downwards to 190.90. The pivot point stands at 192.45. 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 193.05 and the second target at 193.40.

Resistance levels: 193.05 193.40 194.15

Support levels: 191.30 190.95 190