Search ForexCrunch
  • GBP/JPY defended the double top neckline support last week but is struggling to post a solid bounce.
  • The 14-day RSI remains biased bearish below 50.00.

GBP/JPY is currently reporting marginal losses on the day around  144.35, having defended the double top neckline of 143.72 in the last two trading days of the previous week.

Despite the minor bounce from the neckline support, it is still too early to call a bullish reversal, as the pair is yet to find acceptance below the bearish (downward sloping 10-day MA), currently at 144.83.

The outlook, therefore, remains bearish with the 14-day relative strength index (RSI) printing below-50 levels.

A close below 143.72 would confirm a double top breakdown and open the doors to 141.00 (Feb. 15 low).

The prospects of a double top breakdown would weaken if the pair finds acceptance above the hourly chart resistance of 144.72. That would open up upside toward another hourly chart hurdle at 145.63.

Daily chart

Trend: Bearish below 143.72

Pivot point