GBP/JPY is expected to decline further. The pair is clearly in an intraday downtrend, capped by both the falling 20-period and 50-period moving averages. The relative strength index is below its neutrality area at 50%. Last but not least, the process of lower highs and lows is still intact.

Therefore, as long as the resistance at 137.35 is not surpassed, the risk of the break below 136.50 remains high.

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 136.50. A break below this target will move the pair further downwards to 136.15. The pivot point stands at 137.35. 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 137.85 and the second one at 138.15.

Resistance levels: 137.85, 138.15, and 138.45

Support levels: 136.50,136.15, and 135.40