GBP/JPY is expected to trade with a bearish bias. The pair is currently challenging its key resistance at 138, while the relative strength index lacks upward momentum. As long as 138 holds as the key resistance, a drop toward 135 is possible. However, if the pair stands above 138, further upside is likely.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 135.85. A break below this target will move the pair further downwards to 135. The pivot point stands at 138. 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, long positions are recommended with the first target at 139 and the second one, at 140.85.
Resistance levels: 139.00, 140.85, 142
Support levels: 135.85, 135, 133.30