Key Highlights
· The British Pound after failing to break 139.00 versus the Japanese yen started a downward trend.
· There is a bearish trend line on the 4-hours chart of GBP/JPY, which is pushing the pair down.
· Today, the BoJ Monetary Policy Meeting Minutes were published by the Bank of Japan.
· The impact was not much on the Japanese yen, as the currency remained in a positive territory.
GBP/JPY Technical Analysis
The British Pound after an incredible run towards the 139.00 handle against the Japanese yen found sellers, and started a downward trend. The GBP/JPY pair now looks set for further declines since there are many resistances formed on the upside.
The most important one is around a bearish trend line on the 4-hours chart of GBP/JPY. An initial resistance is near the 38.2% Fib retracement level of the last drop from the 133.26 high to 129.74 low.
On the downside, the recent low of 129.74 is a support. A break below it may take the pair further lower in the short term. In that case, a test of 129.00 is also likely going forward. One may even consider selling rallies near the trend line with a stop above it.