Fundamental overview:
GBP/JPY is expected to consolidate with bearish bias. It is undermined by the flows to the safe haven yen amid increased investor risk aversion and weak euro sentiment. The GBP/JPY daily chart downside is limited by the continuing impact from the BOE government, Carney's suggestion on Tuesday that there is no need for further monetary stimulus in the U.K. despite weak U.K. inflation, and by the sterling demand on the soft EUR/GBP cross.

Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are declining.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 177.20. A break of this target will move the pair further downward to 176.50. The pivot point stands at 178.80. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 179.60 and the second target at 180.10.

Resistance levels:
179.60
180.10
181

Support levels:
177.20
176.50
176