Overview:

GBP/JPY is expected to consolidate with bullish bias as markets await U.S. FOMC interest rate decision. GBP/JPY is supported by improved investor risk sentiment and demand from the Japan importers. But EUR/JPY gains are tempered by Japan's exporter sales. Daily chart is mixed as MACD is bearish, five and 15-day moving averages are declining; but stochastics is turned to bullish in oversold zone.

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 172.4 and the second target at 173.45. 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 169.85.

Resistance levels:
172.4
173
173.45

Support levels:
168.85
167.9
167.45