Fundamental Overview:

GBP/JPY is expected to consolidate in a higher range. It is supported by the buoyant USD/JPY undertone, GBP demand on buoyant GBP/AUD, GBP/NZD, GBP/CAD crosses; sterling demand on soft EUR/GBP cross; expectations of rate increases from Bank of England early 2015 and demand from Japanese importers. But GBP/JPY upside is limited by the weak EUR sentiment and Japanese export sales.

Technical Comment:
Daily chart is mixed as MACD is bullish, five-day moving average is above 15-day MA and is advancing; but stochastics is bearish at the overbought zone.

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 179.15 and the second target at 179.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 177.25. A break of this target would push the pair further downwards and one may expect the second target at 176.75. The pivot point is at 178.50.

Resistance levels:
179.15
179.90
180.35
Support levels:
177.25
176.75
175.80