GBP/JPY technical analysis: Under pressure, but risks skewed to the upside

GBP/JPY is looking north with the weekly chart reporting a bullish reversal pattern.
The pair could soon rise above the immediate resistance at 135.67.

Omkar Godbole FXStreet Contributor

GBP/JPY is currently trading around 134.45, representing 0.45% loses on the day. The losses, however, could be short-lived, as technical charts are reporting bullish conditions.

For instance, the weekly chart shows a bullish candlestick reversal pattern – the pair ended last week with 2.82% gains, validating or confirming the bearish-to-bullish trend change signaled by the preceding week's big bullish engulfing candle.

The doors, therefore, look open for a sustained break above the immediate resistance of July 25's high of 135.67.

The breakout, however, may be preceded by a minor pullback to 134.00 if the equity markets trade in the red in Europe due to fears of the European Union (EU)-US trade tensions and concerns of a deeper economic slowdown in China.

Weekly chart

Trend: Bullish

Technical levels

GBP/JPY

Overview
Today last price	134.44
Today Daily Change	-0.69
Today Daily Change %	-0.51
Today daily open	135.13

Trends
Daily SMA20	130.62
Daily SMA50	131.59
Daily SMA100	135.37
Daily SMA200	139.47

Levels
Previous Daily High	135.23
Previous Daily Low	133.16
Previous Weekly High	135.23
Previous Weekly Low	130.81
Previous Monthly High	132.56
Previous Monthly Low	126.54
Daily Fibonacci 38.2%	134.44
Daily Fibonacci 61.8%	133.95
Daily Pivot Point S1	133.78
Daily Pivot Point S2	132.44
Daily Pivot Point S3	131.71
Daily Pivot Point R1	135.85
Daily Pivot Point R2	136.58
Daily Pivot Point R3	137.92

Author

Omkar Godbole

FXStreet Contributor

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

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