GBP/JPY is expected to trade with a bearish bias as the key resistance is seen at 136.55. The pair is consolidating below its key resistance at 136.55, which should limit the upside potential. The 50-period moving average is playing a resistance role, while the relative strength index is above its neutrality level at 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as the key resistance at 136.55 holds on the upside, look for a further drop toward 134.95. A break below this level would call for a further decline toward 134.15.

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 134.95 and the second one at 134.15. In the alternative scenario, short positions are recommended with the first target at 137.40 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 138.15. The pivot point lies at 136.55.

Resistance levels: 137.40, 138.15, 139

Support levels: 134.95, 134.15, 133.40