Overview:

GBP/JPY is expected to consolidate. It is undermined by diminished investor risk appetite and Japan's exports volumes. But GBP/JPY downside move is limited by the demand from the Japanese importers and position adjustments of traders ahead of the Fed's policy announcement Wednesday. Daily chart is still negative-biased as MACD and stochastics are bearish,5 and 15 day moving averages are falling.

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 171.3 and the second target at 172.4. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 168.85. A breach of this target will move the pair further downwards and one may expect the second target at 167.9. The pivot point is located at 169.3.

Resistance levels:
171.3
172.4
173

Support levels:
168.85
167.9
167.45