GBP/JPY Price Analysis: Flashing red after rejection at 50-day SMA, focus on rising wedge pattern
|- GBP/JPY has created a rising wedge or bearish reversal pattern on the 4-hour chart.
- A breakdown would shift risk in favor of a re-test of September lows.
GBP/JPY is currently trading in the red near 137.40 at press time, representing a 0.13% decline on the day, having faced rejection at the 50-day simple moving average (SMA) for the second straight trading day on Monday.
The SMA hurdle is now located at 137.78. Meanwhile, the pair has formed a rising wedge or bearish reversal pattern no the 4-hour chart.
A breakdown would mean the bounce from the Sept. 22 low of 133.04 has ended, and the bears have regained control. That would open the doors to the support range of 135.40-135.18.
Alternatively, a close above the 50-day SMA at 137.78 would signal an extension of the recovery rally.
Daily chart
Trend: Bearish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.