GBP/JPY Price Analysis: Holding former hurdle-turned-support

GBP/JPY is flirting with key support at 134.00.
A strong bounce from 134.00 is needed to revive the bullish setup.

Omkar Godbole FXStreet Contributor

GBP/JPY's pullback from Thursday's high of 134.70 looks to have stalled near 134.00 - the neckline resistance of the double top pattern, which was breached to the higher side on Wednesday.

The pullback to the former hurdle-turned-support has neutralized the immediate bullish setup put forward by Wednesday's double bottom breakout.

The bullish outlook would be revived if the neckline support fuels a move above 134.70. That would validate the falling wedge breakout, a bullish reversal pattern confirmed last week, and open the doors for 136.00.

However, if sellers succeed in establishing a strong foothold below the neckline support of 134.00, a bigger decline toward 132.70 could be seen. At press time, the pair is trading largely unchanged on the day near 134.05.

A bearish move below 134.00 cannot be ruled out, as the long upper wick attached to Thursday's daily candle is suggestive of buyer exhaustion.

4-hour chart

Trend: Neutral

Technical levels

GBP/JPY

Overview
Today last price	134.05
Today Daily Change	0.01
Today Daily Change %	0.01
Today daily open	134.04

Trends
Daily SMA20	134.43
Daily SMA50	133.38
Daily SMA100	134.44
Daily SMA200	137.59

Levels
Previous Daily High	134.71
Previous Daily Low	133.79
Previous Weekly High	133.99
Previous Weekly Low	131.77
Previous Monthly High	139.74
Previous Monthly Low	131.77
Daily Fibonacci 38.2%	134.14
Daily Fibonacci 61.8%	134.36
Daily Pivot Point S1	133.65
Daily Pivot Point S2	133.26
Daily Pivot Point S3	132.73
Daily Pivot Point R1	134.57
Daily Pivot Point R2	135.1
Daily Pivot Point R3	135.49

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.