GBP/JPY is expected to trade with bearish bias as key resistance lies at 137.On Friday, U.S. stock indices posted the modest gains giving a winning streak of four straight sessions. Trading volume was very small ahead of the long weekend (U.S. markets are closed on Monday, July 4 for the Independence Day holiday). The pair is moving sideways below its key resistance at 137, while the relative strength index is around 50 and lacks upward momentum. As long as 137 holds as key resistance, a drop towards 135.85 is possible.
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 137. 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 137.70 and the second one, at 138.70.
Resistance levels: 137.70, 138.70, 139.65
Support levels: 135.85, 135, 133.30