GBP/JPY Price Analysis: Stays bearish despite facing support around 187.00 as double top looms
- GBP/JPY daily chart depicts the formation of double top chart pattern.
- If the pair drops below the Kijun-Sen, expect further downside toward 180.76, due to double top’s confirmation.
- Buyers maintaining the exchange rate above 187.00, could increase the odds of challenging the YTD high.
The GBP/JPY drop extended to three straight days, as it printed losses of 0.09% late in the New York session, with the pair exchanging hands near its opening price at around 187.07.
Even though the GBP/JPY is trading with a negative bias, it has failed to extend its losses below the 187.00 figure, which could have exposed the Tenkan-Sen level at 186.55. A breach of the latter would likely resume the ongoing downtrend, with sellers eyeing the Senkou Span A at 185.63, followed by the Kijun-Sen support at 184.71.
Given the fact that a ‘double top’ chart pattern is pending further confirmation, a daily close below the abovementioned Kijun-Sen level would validate the pattern, which is targeting the October 30 swing low of 180.76.
On the other hand, keeping the spot price above the Tenkan-Sen and the 187.00 mark could put into play a test of the year-to-date (YTD) high seen at 188.65.
GBP/JPY Price Analysis – Daily Chart
GBP/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
