- GBP / JPY fails to extend Friday’s pullback moves from their five week lows.
- The bullish chart pattern has an additional bullish barrier around 136.00.
- 61.8% Fibonacci retracement offers immediate support in price-positive formation.
GBP / JPY falls to 135.20, down 0.12% intraday, ahead of Monday’s UK trading session. The pair depicts a bullish chart play, a falling wedge, on the four o’clock (4H) view under normal RSI conditions.
While the early chart reading keeps the bulls hopeful once the pair breaks through the resistance at 135.55, a confluence of 200 bar SMA and 38.2% Fibonacci retracement from September 22 to October 11 on the upside , near 136.00, becomes a tough problem for the bulls to crack.
It should be noted, however, that the pair’s ability to break through 136.00 may aim for the previous month’s high near 137.85, with 137.00 and 137.70 likely providing intermediate stops during the upside.
Alternatively, a 61.8% Fibonacci retracement level of 134.90 becomes nearby support before the lower formation line, at 134.30 now.
As the price drops past 134.30, the September 25 low near 133.80 may act as a buffer before leading GBP / JPY declines to the September low of 133.04.
Four hour chart GBP / JPY
Trend: expected decline