GBP/JPY is expected to trade with bearish outlook as the Key resistance is at 138.50. The pair has broken down a previous rising trend line support and remains on the downside. The 20-period moving average is below the 50-period one, which should limit any upside potential. Meanwhile the relative strength index is around its neutrality area at 50.

As long as 137.30 holds as the key resistance, expect a drop to the nearest support at 137.30 at first. A break below 137.30 suggests that there will be further drop to 136.75 as 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 137.30. A break below this target will move the pair further downwards to 139.40. The pivot point stands at 139.35. 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 138.85 and the second one at 139.40.

Resistance levels: 138.85, 139.40, and 139.80

Support levels: 137.30,136.75, and 137.00