The GBP/JPY pair remains under downside pressure as the British pound continues to weaken on the foreign exchange market.
GBP/JPY analysis shows that the pair remains vulnerable to further heavy losses over the medium-term.
GBP/JPY medium-term price trend
The British pound is approaching the 130.00 level against Japanese yen currency, following the recent technical rejection from the 135.00 level.
GBP/JPY technical analysis shows that the pair remains under heavy downside pressure while price trades below the 135.30 level.
The daily time frame shows that the pair is trading beneath the neckline of a large head and shoulders pattern.
Medium-term GBP/JPY bears may target the 127.00 level if the 130.00 level is broken.
It is noteworthy that the head and shoulders pattern has a substantial downside projection, with the pattern remaining valid while the price trades below the 157.00 level.
GBP/JPY short-term price trend
GBP/JPY technical analysis shows that the pair is bearish over the short-term while the price trades below the 133.40 resistance level.
The lower time frames show that a bearish head and shoulders pattern has been activated, following the recent decline below the 132.50 level.
According to the size of the pattern, the GBP/JPY pair could decline towards the 129.50 level over the short-term.
Bulls need to move price above the 135.70 level to invalidate the bearish head and shoulders pattern.
Watch out for further short-term losses while the price trades below the 132.50 resistance level.
GBP/JPY technical summary
GBP/JPY analysis shows that bearish patterns are unfolding across the lower and higher time frames. The 127.00 level is seen as a possible medium-term bearish target.