GBP/JPY Technical Analysis: Descending trend channel favors a pullback
|- GBP/JPY forms short-term descending trend channel on the four-hour chart during early Tuesday.
- The pattern favors the pair’s pullback moves to the 142.70 and the 141.88 supports.
- On the break of 144.15 resistance, the formation gets negated.
The GBP/JPY pair trades little changed around 143.25 during early Asian session on Tuesday. The pair portrays a short term downward sloping trend channel that favors its pullback. The channel formation came in effect after the 100-day simple moving average (SMA) confined the pair’s upside during the late-January month.
GBP/JPY 4-hour chart
With an immediate descending trend channel, the GBP/JPY is more likely to revisit the 142.70 support prior to highlighting the 141.88 level comprising channel’s lower-line. Should the pair fails to bounce off the channel-support, the 140.70-60 horizontal-area and the 140.00 round figure may act as important rests.
In case, the prices continue trading downwards after 140.00, the 139.00 and the 137.30 could gain the bears’ attention.
Alternatively, an upside clearance of 144.15 negates the bearish chart pattern and opens the door for its recovery to 144.85. During the pair’s extended rise beyond 144.85, the 61.8% Fibonacci expansion of its latest pullback, near 145.35, could restrict further advances.
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.