GBP/JPY is under pressure. The pair remains in consolidation and is likely to form a "bearish flag" pattern (not yet confirmed). The relative strength index lacks upward momentum. Besides, the 20-period and 50-period moving averages are mixed to bearish.
To sum up, as long as 137.15 holds on the upside, look for a new pullback to test 136.15 at first. A break below 136.15 would trigger a drop towards 135.70.
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 136.15. A break below this target will move the pair further downwards to 135.70. The pivot point stands at 137.15. 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 137.75 and the second one at 138.15.
Resistance levels: 137.75, 138.15, and 138.45
Support levels: 136.15,135.70, and 135.00
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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