- GBP/JPY is flirting with key support at 134.00.
- A strong bounce from 134.00 is needed to revive the bullish setup.
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.
|Today last price||134.05|
|Today Daily Change||0.01|
|Today Daily Change %||0.01|
|Today daily open||134.04|
|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|
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