GBP/JPY False Breakdown Signals Upside Momentum!

GBP/JPY seems undecided in the short term after reaching the 154.82 high. The pair moves sideways showing some overbought signs. Still, the bias is bullish, so it is premature to talk about a strong corrective phase.

It remains to see what will really happen in the short term. JP225 (Nikkei) stays higher and a potential further growth could help the GBP/JPY to increase further. On the other hand Nikkei’s sell-off may signal a strong corrective phase on this pair.

GBP/JPY H4 Chart Technical Analysis!

GBP/JPY is in a neutral area pressuring the uptrend line. It was rejected again by the weekly pivot point (154.14) signaling strong sellers in the short term. The bias is still bullish as long as it stays above 153.76 static support.

A downside breakout could be invalidated anytime as long as it stays above this level. Also, the 153.41 and the S1 (153.45) are seen as critical support levels. Registering a valid breakdown through these downside obstacles could announce a larger decline.

Conclusion!

The bias is still bullish despite the current drops. A valid breakout above the outside sliding line (sl) of the descending pitchfork may activate a new bullish momentum. Actually, a new higher high, a bullish closure above 154.44 may bring us a good buying opportunity.

 

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