GBP/JPY is under pressure. The pair broke above its 20-period moving average but is still capped by its declining 50-period one. Additionally, 137.60 is playing a key resistance role, which should limit the upside potential. The relative strength index is below its neutrality level at 50 and lacks upward momentum. As long as 137.60 is resistance, expect a return to 136.10. A break below this level would call for a further drop toward 135.45.

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 136.10. A break below this target will move the pair further downwards to 135.45. The pivot point stands at 137.60. 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 138.50 and the second one at 139.

Resistance levels: 138.50, 139.00, 139.85

Support levels: 136.10, 135.45, 134.60