GBP/JPY Price Analysis: Bouncing up from a triangle bottom, heading for 182.35 resistance

• The Pound is bouncing up from the bottom of a triangle pattern
• On the upside, a break of 182.35 would expose the triangle top, at 184.05.
• Below 180.90, the next supports 179.85, and the triangle target, at 178.30.

The Sterling has been trading without a clear direction during the last three weeks, which results in the triangle pattern we can see in the daily and four-hour charts.

This pattern has a downside bias, although investors’ disappointment at the dovish BoJ monetary policy decision and the more recent comments by Governor Ueda are providing some support to the Pound.

The pair is now trading with a moderately positive tone, after breaching the 4h 50 SMA and heading to the 182.35 where bulls are expected to be challenged. Above here, the next resistance would be the triangle top, now at 184.05, and the December 11 high, at 184.50.

On the downside, the bottom of the triangle is now at 180.90, which closes the path towards 179.85 and the target of the triangle pattern, at 178.30.

GBP/JPY 4-hour chart

Technical levels to watch