GBP/JPY is expected to trade with a bearish bias as the key resistance is seen at 139.50. The pair again failed to break above the key resistance at 139.50. In other words it has not filled the bearish gap generated at the open of Monday's session. At the same time the intraday relative strength index is around the neutrality level of 50 and shows a lack of upward momentum for the pair. Therefore the intraday outlook remains bearish and the pair should return to 135 and 133.30 on the downside.
Trading recommendations:
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 135.00. A break below this target will move the pair further downwards to 133.20. The pivot point stands at 139.50. 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 142.00 and the second one, at 144.15.
Resistance levels: 142, 144.15, 147.50
Support levels: 135, 133.30, 131.90
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