Overview:

GBP/JPY is expected to trade in a lower range. It is supported by the positive global risk sentiment and demand from Japan importers. But GBP/JPY gains are tempered by the reduced expectations of further easing from the Bank of Japan and Japan exporter sales. Daily chart is still negative-biased as MACD and stochastics are in bearish mode, five-day moving average is below 15-day MA and is declining.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 170.00. A breach of this target will move the pair further downwards to 169.50. The pivot point stands at 172.00. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 172.75 and the second target at 173.15.

Resistance levels:
171.60
172
172.50 Support levels:

170.00
169.50
1697