Overview:

GBP/JPY is expected to trade in a lower range. It is undermined by weak EUR sentiment as well as diminished investor risk appetite and Japanese export sales. But GBP/JPY losses are tempered by the demand from Japanese importers. The daily chart is negative-biased as MACD is bearish. Five-day moving average is below 15-day MA and is declining, although inside-day-range pattern was completed on Tuesday.

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 far as the price is above its pivot point, a long position is recommended with the first target at 174.55 and the second target at 175.15. In an alternative scenario, if the price moves below its pivot points, short positions are advised with the first target at 173.20. A break of this target would push the pair further downwards and one may expect the second target at 172.85. The pivot point is at 173.90.

Resistance levels:
174.55
175.15
175.40

Support levels:
173.20
172.85
172.35