GBP/JPY technical analysis: Solid intraday recovery falters near 130.00 handle

The GBP/JPY cross rallied nearly 200-pips from the Asian session lows, albeit struggled to capitalize on the momentum and failed near the key 130.00 psychological mark.
Given the weekly bearish gap opening below a short-term ascending trend-channel, the near-term set-up might have already turned in favour of bearish traders.

Haresh Menghani FXStreet

The mentioned channel constituted towards the formation of a bearish continuation - flag chart pattern on short-term charts - and support prospects for the resumption of the near-term depreciating move. Hence, any attempted up-move might still be seen as a selling opportunity amid persistent Brexit-related uncertainties.

Meanwhile, technical indicators have been recovering from the negative territory on the daily chart and again started gaining positive traction on hourly charts, which coupled with fading safe-haven demand, seemed to be the only factor holding investors from placing any aggressive bearish bets and might help limit the downside.

Having said that, a sustained weakness back below the 129.00 round figure mark will reaffirm the negative bias and turn the cross vulnerable to head back towards testing the 128.20-128.00 support area before eventually dropping to the 127.00 handle en-route multi-year lows support near the 126.55 region.

On the flip side, momentum beyond the 130.00 handle might confront some supply near the 130.40-50 region, above which the cross is likely to aim towards surpassing the 131.00 handle and challenge the ascending trend-channel resistance - currently near the 131.30-35 region.

GBP/JPY 4-hourly chart

GBP/JPY

Overview
Today last price	129.65
Today Daily Change	0.17
Today Daily Change %	0.13
Today daily open	129.48

Trends
Daily SMA20	129.43
Daily SMA50	133.19
Daily SMA100	137.53
Daily SMA200	140.49

Levels
Previous Daily High	130.57
Previous Daily Low	129
Previous Weekly High	130.71
Previous Weekly Low	128.26
Previous Monthly High	137.8
Previous Monthly Low	131.61
Daily Fibonacci 38.2%	129.6
Daily Fibonacci 61.8%	129.97
Daily Pivot Point S1	128.8
Daily Pivot Point S2	128.11
Daily Pivot Point S3	127.23
Daily Pivot Point R1	130.37
Daily Pivot Point R2	131.25
Daily Pivot Point R3	131.93

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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