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

 

 

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