GBP/JPY is expected to trade in a lower range as the bias remain bearish. The pair broke below a rising channel, which confirmed a bearish reversal. The descending 50-period moving average is playing a resistance role, and should continue to push the prices lower. Last but not least, the relative strength index broke below its 50% neutrality area, and is calling for a new decline. As long as 133.30 holds on the upside, the pair is likely to drop to 132.35 and even to 131.90 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 132.35. A break of this target will move the pair further downwards to 131.90. The pivot point stands at 133.30. 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 133.70 and the second one, at 134.10.
Resistance levels: 133.70, 134.10, 135
Support levels: 132.35, 131.90, 131.55
