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.

Haresh Menghani FXStreet

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

GBP/JPY

Overview
Today last price	129.7
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	129.68

Trends
Daily SMA20	129.27
Daily SMA50	133.06
Daily SMA100	137.37
Daily SMA200	140.42

Levels
Previous Daily High	130.15
Previous Daily Low	128.21
Previous Weekly High	130.71
Previous Weekly Low	128.26
Previous Monthly High	137.8
Previous Monthly Low	131.61
Daily Fibonacci 38.2%	129.41
Daily Fibonacci 61.8%	128.95
Daily Pivot Point S1	128.54
Daily Pivot Point S2	127.4
Daily Pivot Point S3	126.59
Daily Pivot Point R1	130.49
Daily Pivot Point R2	131.29
Daily Pivot Point R3	132.43

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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