I am bearish on GBP/JPY and think there is a chance to sell on a rally. GBP/JPY 1H Chart 8/1(click to enlarge)Bullish divergence:- First of all, the pair is showing a bullish divergence.- This suggests the possibility of a bullish correction ahead this week.Resistance:- If price does rally, we might first see resistance around 136.- Then, there is a pivot at 137 and 137.70. - For me ideally, the rally will be choppy and reach 137.70. - A falling resistance might reinforce the pivot and provide another reason for sellers under 138. - Therefore, I am planning to sell around 137.50, but would like to see further price action before placing an order. - There is a good chance that if GBP/JPY is bearish indeed, I will miss the ride because it might not pull back to 137.50.- But I don't want to chase this trend that could be maturing. In fact, if I go short, I will likely have 135 as a primary target in case GBP/JPY flattens out instead of continuing the downtrend. GBP/JPY daily chart 8/1(click to enlarge)Technical and Fundamental point down:- The daily chart suggests that GBP/JPY's bearish trend is still intact at least from a technical perspective. - Selling on a rally would be in line with the trend that has been going on for a year and has recently accelerated with the passing of Brexit.- I think although that reaction in late-June was sharp and could indicate a last push, the pound is still going to be pressured. - Now that the BoJ looks less and less likely to deliver stimulus, the JPY also has potential of firming up.