GBP/JPY is expected to trade with bearish outlook as the Key resistance is at 140.20. The pair is consolidating and is under pressure below the key resistance level at 140.20, which should limit the upside potential. The relative strength index lacks upward momentum.
Hence, as long as 140.20 is not surpassed, look for a return to 139.30. A break below this level would trigger a new drop to 139.00.
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 139.30. A break below this target will move the pair further downwards to 139. The pivot point stands at 140.20. 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 140.55 and the second one at 140.95.
Resistance levels: 140.55, 140.95, and 141.25
Support levels: 139.30,139.00, and 138.45
