GBP/JPY is expected to trade with a bullish bias. The pair broke above its 20-period and 50-period moving averages, which are playing support roles now, and accelerated on the upside. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum. As long as 138.55 is holding as support, look for a further upside toward 1.2430 and even 140 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 138.45 and the second one at 139. In the alternative scenario, short positions are recommended with the first target at 136.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 136. The pivot point is at 138.55.
Resistance levels: 138.45, 139.00, 139.75
Support levels: 136.60, 136, 135.30
