GBP/JPY Price Analysis: Pound looks weak after being unable to recover 149.00

• GBP/JPY fails to benefit from the recovery in equity prices.
• Chart shows uptrend intact but bearish signals in the short-term.

The GBP/JPY is rising modestly on Monday. It rose earlier to 149.30 and then pulled back, finding support at the 148.30 zone. Price failed to rise back above the 20-SMA in the four-hour chart, showing that the momentum could still favor the yen.

If the pound rises back above 149.10, it would be recovering a key level, suggesting the correction is over. Attention would turn again to the 150.00 area.

On the flip side, immediate support is located at 148.30.  A break lower should lead to more losses, targeting 147.75. Below the next level to watch stands at 147.35, a strong barrier. If the correction continues, an uptrend line from December comes in at 145.70.

On Monday, the GBP/JPY failed to stage a sharp recovery. The rally in Wall Street, with the Dow Jones and the Nasdaq gaining by more than 2%, failed to lift the cross. The decline in GBP/USD combined with small gains in USD/JPY, kept the cross limited.

GBP/JPY 4-hour chart