The GBP/JPY pair is back under downside pressure as the Japanese yen currency starts to strengthen on the foreign exchange market.
GBP/JPY analysis shows that bearish head and shoulders patterns are dominating both the lower and higher time frames.
GBP/JPY medium-term price trend
GBP/JPY analysis shows that the pair is still technically bearish and trading below its key 200-day moving average, around the 137.00 level.
The British pound has failed to build on its early month gains, while the Japanese yen currency is starting to receive renewed buying interest.
The daily time frame continues to show a huge complex head and shoulders pattern, with a downside projection of nearly 3,000 points.
Medium-term GBP/JPY bears need to move price under the 125.00 level to trigger the bearish head and shoulders pattern.
A technical breakout above the 155.00 level is currently needed to invalidate the large complex head and shoulders pattern.
GBP/JPY short-term price trend
GBP/JPY analysis shows that the pair is bearish over the short-term while price trades below the 133.80 resistance level.
Lower time frame analysis is aligning with higher time frame analysis and also shows the presence of a head and shoulders pattern.
A sustained breakout under the 132.00 support level is currently needed to activate the bearish head and shoulders pattern.
According to the size of the pattern the GBP/JPY pair could decline towards the 129.00 level over the short-term.
A sustained breakout above 135.00 level is needed to relieve short-term pressure and invalidate the bearish head and shoulders pattern.
GBP/JPY technical summary
GBP/JPY analysis shows multiple bearish reversal patterns. In the near-term a sustained breakout under the 132.00 support level could trigger heavy losses towards the 129.00 level.