GBP/JPY Technical Analysis: Set-up points to an extension of the bearish trend

Haresh Menghani FXStreet

• The cross reversed a dip to the 144.00 neighborhood, or fresh monthly lows, and rallied around 85-pips, albeit struggled to build on the momentum beyond 50-hour SMA.

• Currently hovering around mid-144.00, the cross has been oscillating in a trading range held since the US trading session on Thursday, forming a rectangle on hourly charts.

• Given that the cross has been struggling to register any meaningful recovery, the rectangular formation might be categorized as a continuation pattern and seen as a pause in the trend.

• Technical indicators on hourly/daily charts have also failed to recover from the bearish territory and add credence to the negative outlook amid the latest UK political turmoil/Brexit uncertainties.

• However, it would be prudent to wait for a convincing breakthrough the mentioned range, and a follow-through selling below the 114.00 handle, before positioning for any further depreciating move.

GBP/JPY 1-hourly chart

GBP/JPY

Overview:
    Last Price: 144.57
    Daily change: -6.0 pips
    Daily change: -0.0415%
    Daily Open: 144.63
Trends:
    Daily SMA20: 146.05
    Daily SMA50: 147.01
    Daily SMA100: 145.84
    Daily SMA200: 147.18
Levels:
    Daily High: 145.32
    Daily Low: 144.3
    Weekly High: 148.74
    Weekly Low: 144.26
    Monthly High: 149.52
    Monthly Low: 142.78
    Daily Fibonacci 38.2%: 144.69
    Daily Fibonacci 61.8%: 144.93
    Daily Pivot Point S1: 144.18
    Daily Pivot Point S2: 143.72
    Daily Pivot Point S3: 143.15
    Daily Pivot Point R1: 145.2
    Daily Pivot Point R2: 145.78
    Daily Pivot Point R3: 146.23

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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