GBP/JPY Price Analysis: A flag consolidation is now in play just as it looked like the pair could head to 140.00


  • GBP/JPY trades 0.17% higher at the beginning of the week.
  • The part has now produced a consolidation pattern after rallying heavily.

GBP/JPY 4-hour chart

GBP/JPY has rallied significantly over the last few months. The pair moved from a low of 131.78 in June to a high of 139.23 last week. The main bulk of the move was made in July during the phase of USD weakness. In this time GBP strengthened and USD/JPY stalled for the most part.

Now there is a consolidation phase the price has converged into a flag pattern. The top of the consolidation is hovering at 139.23 and the low is at 137.75. A break in either direction could tell us about the future trajectory of the pair. 

On the downside, the main support area is at the green line near 136.50. It has been used as both a support and resistance zone on the chart and this means it could be significant in the future. On the topside, the previous high at 139.74 is the main target for the bulls and a break of this level would surely see the trend continue. 

The indicators are looking pretty bearish. The MACD signal lines are breaking to the downside and the Relative Strength Index is tilting lower. For this pair, much will depend on the jobs figures and the GDP. This is a significant week for data in the UK and it could shape how GBP/JPY for the rest of the week, including the direction of the pattern break. 

GBP/JPY Price Analysis

Additional levels

GBP/JPY

Overview
Today last price 138.53
Today Daily Change 0.26
Today Daily Change % 0.19
Today daily open 138.27
 
Trends
Daily SMA20 136.46
Daily SMA50 135.43
Daily SMA100 134.12
Daily SMA200 137.51
 
Levels
Previous Daily High 138.89
Previous Daily Low 137.85
Previous Weekly High 139.24
Previous Weekly Low 137.75
Previous Monthly High 139.21
Previous Monthly Low 132.95
Daily Fibonacci 38.2% 138.25
Daily Fibonacci 61.8% 138.49
Daily Pivot Point S1 137.78
Daily Pivot Point S2 137.29
Daily Pivot Point S3 136.74
Daily Pivot Point R1 138.83
Daily Pivot Point R2 139.38
Daily Pivot Point R3 139.87

 

 

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