- GBP/JPY bulls struggled to build on the overnight move to three-week tops.
- The technical set-up warrants some caution before placing aggressive bets.
The GBP/JPY cross failed to capitalize on the previous session’s goodish intraday positive move and witnessed a modest pullback during the early European session on Thursday.
The cross now seems to have faced rejection near a resistance marked by a near two-month-old descending trend-line, which should now act as a key pivotal point for traders.
Meanwhile, oscillators on the daily chart are yet to gain any meaningful positive traction and warrant some caution before positioning for any further near-term appreciating move.
Looking at a slightly bigger picture, the descending trend-line, along with the 140.85 horizontal support seemed to constitute towards the formation of a bearish descending triangle.
Hence, it will be prudent to wait for a sustained break through the mentioned descending trend-line, above which the cross is likely to aim towards reclaiming the 144.00 round-figure.
On the flip side, the cross now seems to find immediate support near the 142.70 region, which if broken might accelerate the slide towards the overnight swing lows, around the 142.15-10 area.
GBP/JPY daily chart
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