GBPJPY: Double Top Signals Potential Trend Reversal
GBPJPY is showing clear signs of exhaustion after an extended bullish move, with a well-defined Double Top pattern forming near the recent highs.
Price was rejected twice from the same resistance zone, indicating strong selling pressure and weakening bullish momentum. Following the second rejection, the pair broke below the short-term support area, confirming bearish movement.
From a technical perspective:
The double top highlights a possible trend reversal
Bearish continuation could target 208.60, followed by 206.90, and potentially 204.65 if selling pressure accelerates
From a fundamental angle, JPY remains highly sensitive to Bank of Japan commentary and intervention risk, while GBP strength has started to fade after an aggressive rally. Any renewed risk-off sentiment or BOJ signals could further support downside continuation.
You may find more details in the chart.
Thank you and good luck!
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