Key Highlights
· The British Pound started a short-term recovery from the 141.80 low against the Japanese Yen,, but struggled to gain momentum.
· There is a monster bearish trend line with resistance at 143.10 on the 4-hours chart of GBP/JPY.
GBP/JPY Technical Analysis
The British Pound started a downtrend from 148.10 against the Japanese Yen in May 2017. The GBP/JPY pair is currently attempting a recovery from 141.80, but faces a major resistance at 143.10.
Looking at the 4-hours chart, the pair is correcting from the 141.86 low, and moved above the 23.6% Fib retracement level of the last decline from the 43.95 high to 141.86 low.
However, there is a monster bearish trend line with resistance at 143.10. The highlighted trend line acted as a barrier on many occasions, which is why a break above 143.10-50 won’t be easy.
Both the 100 and 200 simple moving averages (H4) are also waiting at 143.90 to act as a strong resistance.
To sum up, the pair faces a huge task ahead and may face a lot of selling pressure if moves towards 143.10 or 143.40. On the downside, a break below 142.00 could push the pair towards 141.80 or even 141.50.
