GBP/JPY technical analysis: On the defensive but falling wedge breakout is still valid

GBP/JPY eyes gain toward 138.50 with the 4-hour chart reporting a falling wedge breakout.
A break below 137.40 is needed to invalidate the bullish setup.

Omkar Godbole FXStreet Contributor

With the US Dollar gaining ground against majors except for the Japanese Yen, the GBP/JPY pair has dipped below 138.00. Despite the 0.15% drop, the outlook remains bullish, as the falling wedge breakout or the bearish-to-bullish trend change confirmed on June 5 is still valid.

The pair, therefore, remains on the hunt for 138.73 (resistance as per the 4-hour chart). Supporting the bullish case is the impending bullish crossover of the 5- and 10-day moving averages (MAs).

The outlook, however, would turn bearish if the 4-hour chart rising trendline support, currently at 137.40, is breached.

4-hour chart

Trend: Bullish

Pivot points

1. R3 138.85
2. R2 138.51
3. R1 138.16
PP 137.82
1. S1 137.46
2. S2 137.12
3. S3 136.77

Author

Omkar Godbole

FXStreet Contributor

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

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

Coinbase Bitcoin Premium Index extends historical negative streak as risk appetite deteriorates

The Coinbase Bitcoin Premium Index extends its negative streak to 78 consecutive days on Tuesday, the longest on record. This reading comes amid the ongoing bearish trend, which has seen Bitcoin (BTC) drop by almost 50% from its record high to trade around $64,000.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.