Overview:

GBP/JPY is expected to trade in a lower range. It is supported by the reduced risk aversion and demand from Japanese importers. But GBP/JPY gains are tempered by Japanese export sales. The daily chart is still negative-biased as MACD and stochastics are in the bearish mode. Five-day moving average is below 15-day MA and is 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 its pivot point. Short position is recommended with the first target at 172.85. A break of this target will move the pair further downwards to 172.35. The pivot point stands at 174.40. In case the price moves in the opposite direction and bounces back from the support level, and then it will 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 175.15 and the second target at 175.40.

Resistance levels:
175.15
175.40
175.85

Support levels:
172.85
172.35
172