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.

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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD struggles to hold 0.7700 amid risks recovery, off in Australia

AUD/USD snaps two-day losing streak, while extending bounce off one-week low, despite recently easing from intraday top. Vaccine news battles uncertainty over the US stimulus, mixed headlines from China gets less audience.

AUD/USD News

EUR/USD: Fades bounce off 50-day SMA above 1.2100

EUR/USD sellers probe intraday low while defying the previous day’s U-turn from 50-day SMA. Bearish MACD, failures to keep recovery moves from the key SMA favor sellers. 

EUR/USD News

Gold: Bulls target daily extension

Gold is on the verge of an upside extension on a break of weekly resistance. XAU/USD is making progress with respect to the bullish market structure following a period of consolidation in recovery of the daily correction.

Gold news

Ripple is South Korea’s most popular cryptocurrency, but XRP price stays pressured

XRP/USD bounces off intraday low of 0.2647, stays below 21-day SMA for fifth day. As per the latest report from Messari, Bitcoin and Ripple are the most popular cryptocurrencies in South Korea.

Read more

US Dollar Index: A breach of 90.00 exposes 2021 lows at 89.20

The inability of USD-bulls to push further north of recent tops in the 91.00 region in past sessions prompted sellers to return to the markts and shifted the attention to the potential continuation of the downtrend.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures