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GBP/JPY Putting in a Price Top

GBP/JPY has been rallying in February from a low on the year at 175.50 to 185.00 last week. Then it stalled between this resistance and the 183.50 area.support. Today (3/4) we are seeing the pair fall below this range completing a price top in the 4H chart.

GBP/JPY 4H Chart 3/4
(click to enlarge)

The 4H chart shows that price is also falling below the 100-, and 50-period SMAs. The RSI is also falling below 40, which shows loss of the prevailing bullish momentum from February.

Now ,the pair looks poised to fall towards the 181 support pivot, which is also where the 200-period SMA resides. Momentum might bring it further, but 180-180.15 will be a key support/resistance pivot. Below 180, GBP/JPY might open up the 175.50-176 lows on the year.

If GBP/JPY rebounds, look for resistance under 184-184.25. Respect of this area would confirm a price top and make the bearish outlook to 181, 180 more likely. Above 184, GBP/JPY might continue its bullish trend since February, which would put pressure on the 185 level and beyond.