GBP/JPY is under pressure. The pair accelerated on the downside after the bearish breakout of its horizontal level at 136.40. The previous support now acts as a key resistance role, which should limit any upside room. Even though a technical rebound cannot be ruled out, its extent should be limited. To sum up, as long as 136.40 holds as a resistance, the pair is likely to drop to its nearest support at 135.10. A break below this level would open the path to further weaknesses toward 134.50.
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 135.10. A break below this target will move the pair further downwards to 134.50. The pivot point stands at 136.40. 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 137.10 and the second one, at 137.75.
Resistance levels: 136.40, 137.10, 137.75, 138.50
Support levels: 135.10, 134.50, 133.95
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