GBP/JPY technical analysis: Bulls might continue to struggle near 130.00 handle
- The GBP/JPY cross once again showed some resilience below 200-hour SMA and quickly reversed an early dip to 129.00 neighbourhood, hitting fresh session tops in the last hour.
- The intraday uptick, however, remained capped below the key 130.00 psychological mark, which should act as a key pivotal point and help determine the pair's near-term direction.
Given that the cross on Monday broke below a short-term ascending trend-channel - forming a part of a bearish continuation flag chart pattern - the near-term set-up might have already turned in favour of bearish traders and support prospects for the resumption of the near-term depreciating move.
With technical indicators on the daily chart still holding in the bearish territory, any attempted up-move might still be seen as a selling opportunity in the wake of persistent Brexit-related uncertainties and reviving safe-haven demand for the Japanese Yen amid concerns over the global economic growth.
Sustained weakness below the 129.00 round figure mark will reinforce the near-term bearish outlook and turn the cross vulnerable to head back towards testing the 128.20-128.00 support area before eventually dropping to the 127.00 handle en-route multi-year lows support near the 126.55 region.
On the flip side, decisive move beyond the 130.00 handle might confront fresh supply near the 130.40-50 region, above which the cross is likely to aim towards surpassing the 131.00 handle and challenge the ascending trend-channel resistance - currently near the 131.30-35 region.
GBP/JPY 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
