Overview:

GBP/JPY is expected to trade in higher range. It is undermined by diminished investor risk appetite, Japan's export sales and weak euro sentiment. But GBP/JPY losses are tempered by the demand from Japan's importers. Daily chart is still positive-biased as MACD and stochastics is in bullish mode, five-day moving average is above 15-day MA and still advancing.

Trading recommendation:

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 far as the price is above its pivot point, a long position is recommended with the first target at 170.3 and the second target at 171.35. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 168.25. A breach of this target will push the pair further downwards and one may expect the second target at 167.1. The pivot point is at 169.

Resistance levels:
170.3
171.35
172.40

Support levels:
168.25
167.1
166.15