- GBP/JPY holds onto recovery gains after confirming the bullish chart pattern.
- 100-bar SMA, monthly resistance line in focus.
- 23.6% Fibonacci retracement, 126.15 add to the supports.
Having confirmed the inverse head-and-shoulders bullish pattern on the four-hour (H4) chart, GBP/JPY remains positive around 131.20 amid the early Wednesday morning in Asia.
The pair currently heads to the confluence of 100-bar SMA and the monthly falling trend line, near 132.70/75.
Also adding upside filter is the 61.8% Fibonacci retracement of its current month declines, at 133.10.
In a case where the bulls manage to dominate past-133.10, odds of witnessing 137.20 back to the chart can’t be ruled out.
If at all the GBP/JPY prices slip below the neckline of 129.50 and defy the bullish formation, 23.6% Fibonacci retracement near 127.50 can question the sellers.
Should there be a clear downside past-127.50, 126.15 and the monthly low near 124.00 will be on the sellers’ radar.
GBP/JPY four-hour chart
Trend: Further recovery expected