GBP/JPY technical analysis: Short-term support-line limits pullback inside a week-long rising wedge


  • GBP/JPY rests on three-day-old support-line inside a week-long rising wedge formation.
  • Either side break of 129.75 or 128.70 becomes the key.

GBP/JPY rests on an immediate rising trend-line as it trades near 129.27 during the early Asian session on Tuesday.

While a break of the three-day-old support-line, at 129.20 now, can drag prices to the short-term rising wedge support of 128.70, pair’s further downside will confirm the bearish technical pattern and can drag the quote towards last week's low of 126.55.

However, 127.50 and 126.80 could offer intermediate halts during the pair’s south-run.

Alternatively, an upside clearance of 129.75 negatives the bearish formation and can trigger fresh run-up to 130.00 round-figure.

It should also be noted that 130.30 and 130.65 will entertain buyers past-130.00 breakout.

GBP/JPY hourly chart

 Trend: Bearish

    1. R3 131.24 
    2. R2 130.41 
    3. R1 129.8 
  1. PP 128.97
    1. S1  128.36
    2. S2  127.53
    3. S3  126.92

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures