- GBP/JPY’s recovery remains capped below 150.00.
- The cross spots a bear flag on the four-hour chart.
- The price is recovering from the oversold region.
GBP/JPY has paused its five-day downtrend, although the recovery remains capped by 150.00, leaving the pair almost unchanged on the day.
The bears are looking to fight back control, as the four-hour chart displays a potential bear pennant formation.
A sustained break below the rising trendline support at 149.30 is awaited to confirm the bearish continuation pattern.
Should the downside breakout materialize a drop towards the 148.50 level cannot be ruled.
The Relative Strength Index (RSI) is on a steady from the extreme oversold conditions, looking to dive out to the bearish zone. The momentum indicator currently stands at 26.33, reversing from 24.00 levels.
GBP/JPY four-hour chart
On the flip side, acceptance above 150.08 could call for a meaningful recovery towards the bearish 21-Simple Moving Average (SMA) at 151.10.
The former is the rising trending resistance, which emerges as the bear pennant failure point.
However, the bulls will need to crack the 150.50 psychological barrier in order to challenge the 21-DMA.
GBP/JPY additional levels to watch
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