GBP/JPY is expected to trade with a bullish bias. The pair is rebounding on its horizontal support at 131.55, while the 20-period moving average has just crossed above the 50-period one.European stocks turned positive with the STOXX Europe 600 rebounding 0.8%. Germany's DAX rose 0.9%, the U.K.'s FTSE increased 0.7%, and France's CAC gained 1.2%. Further bounce is therefore expected with 132.70 and 133.20 as targets.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 132.70 and the second one, at 133.20. In the alternative scenario, short positions are recommended with the first target at 130.90, if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 130.50. The pivot point is at 131.55.

Resistance levels: 132.70, 133.20 , 134.60

Support levels: 130.90 , 130.50, 129.75