GBP/JPY is expected to prevails its downside movement. The pair broke below its former key support at 1.2140, which becomes a resistance now, with a bearish gap and is holding on the downside. The relative strength index is bearish below its 30% level and calls for a further drop. The downward momentum is further reinforced by its declining trend line, which emerged on Jan 12, as well as its descending 20-period and 50-period moving averages. As long as 138.90 holds on the upside, look for a further drop toward 136.60 and even 135.30 in extension.

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 136.60. A break below this target will move the pair further downwards to 135.30. The pivot point stands at 138.90. 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 139.75 and the second one at 140.50.

Resistance levels: 139.75, 140.50, 141.50

Support levels: 136.60, 135.30, 134.45