GBP/JPY is under pressure. The pair is under pressure below the key resistance at 138.35, which should limit the upside potential. The 20-period moving average crossed below the 50-period one, which indicated a negative signal. The relative strength index is below its neutrality level at 50.
Therefore, as long as 138.35 is not surpassed, expect a return to 137.10. A break below this level would trigger another test to 136.50.
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 137.10. A break below this target will move the pair further downwards to 136.50. The pivot point stands at 138.35. If 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 138.70 and the second one at 139.00.
Resistance levels: 138.70, 139.00, and 139.45
Support levels: 137.10,136.50, and 136.00
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