GBP/JPY is expected to trade with bullish bias as it is supported by a rising trend line. The pair has been supported by a bullish trend line since November 11, as well as its 20-period moving average, which remains above the 50-period one. Meanwhile, the relative strength index is held up by an ascending trend line and is positively oriented. As long as 134.15 is not broken down, further bounce is preferred with 136.60 and 137.40 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 136.60 and the second one at 137.40. In the alternative scenario, short positions are recommended with the first target at 133.40 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 132.45. The pivot point lies at 134.15.

Resistance levels: 136.60, 137.40, 138.20

Support levels: 133.40, 132.45, 131.65