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.
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
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Technical levels to watch
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.
