GBP/JPY is expected to trade with bullish bias above 142.60. The pair pulled back this morning to test its nearest support at 142.60, representing the current 50-period moving average. The relative strength index is below its neutrality level at 50, and calls for caution. Nevertheless, as long as 142.60 is not clearly broken, any consolidations should be limited before a new bounce toward 145.20 first. A break above 145.20 would call for further advance toward 146.10.

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 145.20 and the second one at 146.10. In the alternative scenario, short positions are recommended with the first target at 141.50 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 140.00. The pivot point lies at 142.60.

Resistance levels: 1145.20, 146.10, 146.95

Support levels: 141.50, 140.00, 139.25