GBP/JPY Price Analysis: Faces pullback as rising wedge emerges despite bullish indicators

Despite technical indicators predicting further upside, GBP/JPY sees consecutive negative sessions; it currently trades at 173.44.
Potential pullback looms, with immediate support at the Tenkan-Sen line of 173.43 and further at 173.00.
For bullish continuation, GBP/JPY needs to claim the 174.00 mark.

Christian Borjon Valencia FXStreet

GBP/JPY registers back-to-back negative sessions, sponsored by risk aversion; though technical indicators suggest further upside, price action means the rally is losing steam. As the Asian session begins, the GBP/JPY trades at 173.44, up a minuscule 0.01%.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY is upward biased thought; it could be subject to a pullback, as the GBP/JPY is forming a rising wedge. On the downside, prices remain capped by the Tenkan-Sen line at 173.43, which would act as immediate support, but with a decisive break below the latter, the GBP/JPY could dive towards the 173.00 figure. The following support would be the May 2 high at 172.33, followed by the Kijun-Sen line at 171.26.

The GBP/JPY must claim the 174.00 mark for a bullish continuation. A breach of the latter will expose the YTD high at 174.68, with buyers eyeing 2016 high at 177.37.

GBP/JPY Price Action – Daily chart

GBP/JPY

Overview
Today last price	173.43
Today Daily Change	-0.21
Today Daily Change %	-0.12
Today daily open	173.64

Trends
Daily SMA20	171.96
Daily SMA50	168.75
Daily SMA100	164.95
Daily SMA200	164.54

Levels
Previous Daily High	174.38
Previous Daily Low	172.85
Previous Weekly High	174.68
Previous Weekly Low	172.53
Previous Monthly High	174.28
Previous Monthly Low	167.84
Daily Fibonacci 38.2%	173.44
Daily Fibonacci 61.8%	173.8
Daily Pivot Point S1	172.87
Daily Pivot Point S2	172.1
Daily Pivot Point S3	171.35
Daily Pivot Point R1	174.4
Daily Pivot Point R2	175.15
Daily Pivot Point R3	175.93

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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