GBP/JPY is expected to trade with a bearish bias as key resistance is set at 133.60. The pair recorded a succession of lower tops and lower bottoms since September 15, which confirms a negative view. Additionally, 114.25 is playing a key resistance role, which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited. As long as 133.60 is not broken, look for further downside toward 132.35 and even 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 below this target will move the pair further downwards to 131.90. The pivot point stands at 133.60. 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 134.05 and the second one, at 134.60.

Resistance levels: 134.05, 134.60, 135.20

Support levels: 132.35, 131.90, 131