GBP/JPY technical analysis: Quickly retreats over 100-pips from multi-month tops
|- The intraday upsurge fails to sustain above an ascending trend-channel resistance.
- Overbought conditions on hourly charts might have prompted some profit-taking.
The GBP/JPY cross trimmed a part of its early strong gains to the highest since May 21 and quickly retreated nearly 100 pips from an intraday swing high level of 141.50, with bulls struggling to sustain above a short-term ascending trend-channel.
Extremely overbought conditions on hourly charts seemed to be the only factor that prompted some profit-taking amid a flurry of Brexit-related headlines. The cross now seems to have stabilized near 61.8% Fibonacci level of the 148.88-126.54 slide.
Any subsequent pullback below the key 140.00 psychological mark might find some support near the 139.70-65 horizontal zone, below which the corrective slide could extend towards the trend-channel support – around the 138.80 region.
On the upside, the 140.60 region now seems to act as an immediate resistance and is closely followed by the trend-channel hurdle near the 141.00-141.10 area, which if cleared will set the stage for an extension of the recent bullish trajectory.
GBP/JPY 1-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.