Overview:

GBP/JPY is expected to trade in a higher range. It is supported by the positive investor risk appetite and bullish euro sentiment. But GBP/JPY gains are tempered by the sell-euro orders from the Japan exporters. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Monday, MACD and stochastics are bullish, five-day moving average is above 15-day MA and is advancing.

Trading recommendation:
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 far as the price is above its pivot point, a long position is recommended with the first target at 172.80 and the second target at 171.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 171.40. A breach of this target will push the pair further downwards and one may expect the second target at 171. The pivot point is at 171.75.

Resistance levels:
172.80
173.15
173.65

Support levels:
171.40
171
170.50