- GBP/JPY retreats from the weekly high of 188.24 and trades around 187.00 amid emerging bearish chart patterns.
- The formation of an “evening star” pattern near the yearly highs indicates the possibility of further declines, with key supports at 186.41 and 186.04 in focus.
- A bounce above 188.00 could invalidate the bearish outlook, setting the stage for a test of the year-to-date high at 188.24 and possibly the 190.00 level.
The GBP/JPY pair retreats from the weekly highs reached on Wednesday around 188.24 and hovers around the 187.00 area late in the New York session, while a three-candle chart pattern appears that could justify further bearish pressure on the pair.
In the short term, the GBP/JPY pair is consolidating near the year’s highs, although it is forming an “evening star” chart pattern. However, sellers must reclaim the Tenkan-Sen at 186.41, along with the Nov 14 low at 186.04 to exacerbate a deeper pullback below the Senkou Span A seen at 185.47, ahead of the Kijun-Sen at 184.52.
On the other hand, if buyers reclaim 188.00, this could open the door for further upside, with buyers targeting the year-to-date high at 188.24, followed by 190.00.
GBP/JPY Price Analysis – Daily Chart
GBP/JPY Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
