GBP/JPY is expected to post some further upside gains. The technical picture of the pair is bullish above a rising trend line, which confirms a positive view. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which play a support role and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, 131.00 is playing a key support role, which should limit the downside potential. The British pound showed signs of stabilization after chalking a 31-year low of 1.2683 against the U.S. dollar intraday. At the close, GBP/USD settled at 1.2748, up 0.2% on day. Meanwhile, a report by consultancy firm Oliver Wyman pointed out that the British financial industry could lose up to 38 billion pounds in revenue in case the U.K.'s formal separation from the European Union restricts finance firms' access to the EU single market.

As long as 131.00 holds on the downside, look for a further upside toward 132.45 and even 133.25 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 132.45 and the second one at 133.25. In the alternative scenario, short positions are recommended with the first target at 130.45 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 130.00.The pivot point lies at 131.00.

Resistance levels: 132.45, 133.25, 134.10

Support levels: 130.45, 130.00, 129.65