GBP/JPY's bias remains bearish below 172. The pair remains under pressure below its resistance at 172, and has just validated an intraday "bearish flag" pattern. A new drop seems to be on the cards, as the intraday relative strength index is still negative, showing no reversal signals. To sum up, as long as 1.4565 holds on the upside, look for further decline to 169.35 and 168.30 in extension.

Trading Recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 169.35. A break of that target will move the pair further downwards to 168.30. The pivot point stands at 172. 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, long positions are recommended with the first target at 173.25 and the second target at 174.30.

Resistance levels: 173.25, 174.30, 175

Support levels: 169.35, 168.30, 167.65