GBP/JPY technical analysis: Flat lined above 140 despite flag breakout

GBP/JPY is struggling to capitalize on a bull flag breakout.
The immediate outlook stands neutralized and a move above 140.53 is needed to revive the bullish setup.

Omkar Godbole FXStreet Contributor

GBP/JPY is struggling to post sustainable gains above 140 despite a bullish pattern on technical charts.

The currency pair jumped to 140.53 in the US trading hours on Tuesday, confirming a flag breakout on the 4-hour chart. The breakout signaled a resumption of the rally from lows near 130.50 seen on Oct. 8 and opened the doors for a retest of the recent high of 141.50.

Even so, the rise to 140.53 was short-lived and the pair quickly fell back to 139.90. The immediate outlook, therefore, stands neutralized. A break above 140.53 is now needed to validate the flag breakout.

As of writing, the pair is trading largely unchanged on the day around 140.00.

The bulls need progress soon, else the flag breakout may fail, inviting stronger selling pressure.

Daily chart

Trend: Neutral

Technical levels

GBP/JPY

Overview
Today last price	140.03
Today Daily Change	-0.09
Today Daily Change %	-0.06
Today daily open	140.12

Trends
Daily SMA20	136.83
Daily SMA50	133.93
Daily SMA100	133.78
Daily SMA200	138.71

Levels
Previous Daily High	140.54
Previous Daily Low	139.46
Previous Weekly High	141.37
Previous Weekly Low	138.87
Previous Monthly High	135.75
Previous Monthly Low	126.67
Daily Fibonacci 38.2%	140.13
Daily Fibonacci 61.8%	139.87
Daily Pivot Point S1	139.54
Daily Pivot Point S2	138.96
Daily Pivot Point S3	138.46
Daily Pivot Point R1	140.62
Daily Pivot Point R2	141.12
Daily Pivot Point R3	141.7

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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