Overview:

GBP/JPY is expected to consolidate in a lower range. It is undermined by the negative euro sentiment and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers and the positive investor risk sentiment. The daily chart is negative-biased as bearish outside-day-range pattern was completed on Tuesday, MACD is bearish and stochastics stays suppressed in the oversold zone. A five and 15-day moving averages are declining.

Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 173.40 and the second target at 173.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 172.35. A break of this target would push the pair further downwards and one may expect the second target at 171.90. The pivot point is at 172.70.

Resistance levels:
173.40
173.75
174.10

Support levels:
172.35
171.90
171.65