The GBP/JPY was bullish in February, rallying from 175.50 to 185. Let’s take a look at the charts as this rally seems to be coming to an end.
The market started to consolidate between 183.54 and 185 last week. This week, traders pushed the pair below 183.54 and formed a price top. Then, after the Bank of England’s monetary policy statement, price jolted but found resistance from the broken range as well as the 100-, and 50-period SMAs in the 4H chart. This confirms topping and suggests a bearish outlook at least in the short-term.
The 200-period SMA and around the 181 will be the first target, though the key levels to monitor for support is in the 179.40-180.30 support/resistance area.
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