- GBP/JPY trsdes near 132.90 with a lack of clear directional bias.
- A move above 133.00 would confirm the bullish trend signaled by Wednesday’s candle.
GBP/JPY created a bullish hammer candle on Wednesday, but so far, that has failed to invite stronger buying pressure.
At press time, the currency pair is flatlined around 132.90, having hit a high and low of 133.05 and 132.77, respectively, early Thursday.
While a bullish hammer is widely considered an advanced warning of impending gains, seasoned traders usually wait for a follow-through in the form of a convincing move above the high of the positive candle.
The focus, therefore, is on Wednesday’s high of 133. A sustained move above that level will likely invite more chart-driven buying, yielding a move above 134.00.
Alternatively, a break below 131.68 would confirm a head-and-shoulders breakdown on the daily chart and create room for a deeper slide to 130.00.
Daily chart
Trend: Neutral
Technical levels
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