Overview:
GBP/JPY is expected to consolidate. It is undermined by waning investor risk tolerance and Japan's export sales. But EUR/JPY losses are tempered by the demand from the Japanese importers and loose BOJ monetary policy. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought zone, 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 171.2 and the second target at 171.90. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 169.5. A breach of this target will push the pair further downwards and one may expect the second target at 169. The pivot point is at 170.
Resistance levels:
171.2
171.90
172.55
Support levels:
169.5
169
168.25