GBP/JPY technical analysis: Quickly retreats over 100-pips from multi-month tops

The intraday upsurge fails to sustain above an ascending trend-channel resistance.
Overbought conditions on hourly charts might have prompted some profit-taking.

Haresh Menghani FXStreet

The GBP/JPY cross trimmed a part of its early strong gains to the highest since May 21 and quickly retreated nearly 100 pips from an intraday swing high level of 141.50, with bulls struggling to sustain above a short-term ascending trend-channel.

Extremely overbought conditions on hourly charts seemed to be the only factor that prompted some profit-taking amid a flurry of Brexit-related headlines. The cross now seems to have stabilized near 61.8% Fibonacci level of the 148.88-126.54 slide.

Any subsequent pullback below the key 140.00 psychological mark might find some support near the 139.70-65 horizontal zone, below which the corrective slide could extend towards the trend-channel support – around the 138.80 region.

On the upside, the 140.60 region now seems to act as an immediate resistance and is closely followed by the trend-channel hurdle near the 141.00-141.10 area, which if cleared will set the stage for an extension of the recent bullish trajectory.

GBP/JPY 1-hourly chart

GBP/JPY

Overview
Today last price	140.26
Today Daily Change	0.74
Today Daily Change %	0.53
Today daily open	139.52

Trends
Daily SMA20	133.84
Daily SMA50	131.82
Daily SMA100	133.55
Daily SMA200	138.73

Levels
Previous Daily High	140.12
Previous Daily Low	137.48
Previous Weekly High	137.9
Previous Weekly Low	130.42
Previous Monthly High	135.75
Previous Monthly Low	126.67
Daily Fibonacci 38.2%	139.11
Daily Fibonacci 61.8%	138.49
Daily Pivot Point S1	137.96
Daily Pivot Point S2	136.4
Daily Pivot Point S3	135.32
Daily Pivot Point R1	140.6
Daily Pivot Point R2	141.68
Daily Pivot Point R3	143.24

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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