GBP/JPY is expected to trade with a bearish bias. The pair stays below 1.2835 and remains capped by a negative trend line. Meanwhile, the relative strength index lacks upward momentum. The British pound marked a two-week low of 1.3136 against the greenback as U.K. jobs data provided little encouragement. The Office for National Statistics reported that the May-July jobless rate was 4.9%, unchanged from the three months to June, while growth in wages slowed. Besides, the number of jobless benefit claimants increased 2,400 to 771,000 in August (vs. +1,800 expected, -3,600 in July).
As long as 136.10 is not broken above, a break below 134.50 is likely.
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 134.50. A break below this target will move the pair further downwards to 133.95. The pivot point stands at 136.10. 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 136.65 and the second one, at 137.10.
Resistance levels: 136.65, 137.10, 137.75
Support levels: 134.50, 133.95, 133.00
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