- GBP/JPY is halting its bearish momentum, but downside risks remain if it fails to capture the Tenkan-Sen.
- A “tweezer bottom” candlestick chart pattern is forming; is further growth expected?
- Failure of buyers to conquer 186.00 could exacerbate the decline towards the 184.50 area.
GBP/JPY snapped a four-day losing streak, rising 0.31% in late Tuesday’s North American session to exchange hands around 186.00 after bouncing off daily/weekly lows hit at 184.45.
GBP/JPY daily diagram it shows the pair as neutral biased as the Tenkan and Kijun-Sen slope has moved flat, which could open the door for range-bound trading. On the upside, the pair’s first resistance would be the Tenkan-Sen at 186.37, followed by 187.00, ahead of the year-to-date (YTD) high at 188.24.
On the other hand, if GBP/JPY breaks below the Kijun-Sen at 184.52, it would pave the way for a test of the Senkou Span B at 183.15, followed by the bottom of the Ichimoku Cloud (Kumo) at 181.75.