GBP/JPY Technical Analysis: Bulls trying to defend descending channel support ahead of BoE

Haresh Menghani FXStreet

• Over the past two weeks or so, the cross has been correcting from near two-month tops along a descending trend-channel formation on short-term charts.

• Oscillators on hourly charts maintained their bearish bias and have just started gaining negative momentum on the daily chart, suggesting additional weakness.

• Meanwhile, the fact that the cross remains well below important intraday moving averages - 50, 100 & 200-hour SMA, further reinforce the near-term bearish outlook.

• However, given the recent upsurge, the channel might constitute toward the formation of a bullish continuation – flag chart pattern and thus, warrant some caution.

• Hence, it would be prudent to wait for a convincing breakthrough the channel support, which will confirm a bearish breakdown and open room for further downside.

GBP/JPY 1-hourly chart

GBP/JPY

Overview:
    Today Last Price: 141.69
    Today Daily change %: -0.38%
    Today Daily Open: 142.23
Trends:
    Daily SMA20: 141.93
    Daily SMA50: 141.56
    Daily SMA100: 144.17
    Daily SMA200: 144.97
Levels:
    Previous Daily High: 142.53
    Previous Daily Low: 141.75
    Previous Weekly High: 144.73
    Previous Weekly Low: 142.08
    Previous Monthly High: 144.85
    Previous Monthly Low: 131.79
    Daily Fibonacci 38.2%: 142.05
    Daily Fibonacci 61.8%: 142.23
    Daily Pivot Point S1: 141.81
    Daily Pivot Point S2: 141.39
    Daily Pivot Point S3: 141.03
    Daily Pivot Point R1: 142.59
    Daily Pivot Point R2: 142.95
    Daily Pivot Point R3: 143.37

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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