GBP/JPY technical analysis: Corrects from 3-week tops, still above 130.00 mark
|- The GBP/JPY cross traded with a mild negative bias through the early European session on Friday and eroded a part of the previous session's strong upsurge to three-week tops.
- The overnight upsurge stalled near the top end of an ascending trend-channel, which seemed to constitute towards the formation of a bearish continuation - flag chart pattern.
Hence, it will be prudent to wait for a sustained break through the mentioned barrier before confirming that the cross might have actually bottomed out in the near-term and positioning for any further appreciating move beyond the 131.00 round figure mark towards testing the next major hurdle near the 131.45-50 region.
Meanwhile, technical indicators on the daily chart have been recovering from the bearish territory but struggled to gain positive traction. Moreover, oscillators on hourly charts have been losing upside momentum - though maintained their positive bias - and further warrant some caution before placing any fresh bullish bets.
A follow-through retracement below the key 130.00 psychological mark will reaffirm the trend-channel resistance and prompt some fresh selling, turn the cross vulnerable to accelerate the slide back towards an intermediate resistance near the 129.55 region en-route 129.25-20 horizontal support and the 129.00 round figure mark.
GBP/JPY 4-hourly chart
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.