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GBP/JPY slips after false breakout, eyes 216.50 support

GBP/JPY was down 0.36% at the time of writing, with 216.50 and 216.00 flagged as the next key support levels.

Reported · Written up by our desk · Major Pairs

GBP/JPY failed to hold a breakout above 217.00 and reversed toward 216.50, with traders fading the move and pushing the pair lower to current levels, FXStreet reports.

At the time of writing, the cross was trading with losses of 0.36%, and price action points to a potential bearish setup after the reversal, which the outlet links to an “evening star” pattern often seen around false breakouts.

FXStreet highlights 216.50 as the first psychological support, then 216.00, where a breakdown could expose the 50-day Simple Moving Average at 215.78 and the 100-day SMA at 215.02.

On the upside, the outlet says a reclaim of 217.00 could open the door to 218.00 first, followed by higher levels near the July 30 highs at 218.69 and 219.00.

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