GBP/JPY Price Analysis: The Pound breaks trendline support and tests 180.00 area

The Sterling breaks trendline support to test the 180.00 level.
The Pound looks vulnerable against a stronger Yen.
Below 180.00 the target will be October and November lows at the 178.10/30 area.

Guillermo Alcala FXStreet

The Sterling has broken below the bottom of the last three weeks' triangle pattern, at 181.80, weigher by broad-based Yen strength, and is testing the 180.00 support area at the moment of writing.

A clear break below 179.90 would clear the path towards the big target, at the 178.10/30 area, the mid-December and early October lows, which would confirm the continuation of the downtrend from late November highs.

The 180.00 level is a significant support zone, which has capped bears several times in the last two weeks. In this sense, I would not discard a retest of the reverse trendline, around 180.85 before further decline takes place.

A bullish reaction above the mentioned trendline would ease downside pressure and set put 182.35 resistance back into play

GBP/JPY 4-hour chart

Technical levels to watch

GBP/JPY

Overview
Today last price	180.09
Today Daily Change	-1.42
Today Daily Change %	-0.78
Today daily open	181.51

Trends
Daily SMA20	182.59
Daily SMA50	184.06
Daily SMA100	183.72
Daily SMA200	178.97

Levels
Previous Daily High	182.2
Previous Daily Low	181.1
Previous Weekly High	184.18
Previous Weekly Low	179.79
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	181.78
Daily Fibonacci 61.8%	181.52
Daily Pivot Point S1	181.01
Daily Pivot Point S2	180.51
Daily Pivot Point S3	179.91
Daily Pivot Point R1	182.11
Daily Pivot Point R2	182.7
Daily Pivot Point R3	183.21

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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