GBP/JPY technical analysis: 4H chart favors retest of 141

• GBP/JPY is eyeing corrective rally on a bullish divergence of the 4-hour chart indicator.
• The pair could test the 10-day moving average, currently placed just above 141.00, in the next few hours.

GBP/JPY is currently trading at 140.67 and could soon revisit the psychological resistance of 141.00.

The currency pair rose to a high of 141.73 in the US trading hours on Tuesday only to close with moderate gains at 140.38.

Despite the pullback, the bullish divergence of the 4-hour chart relative strength index (RSI) is valid. Further, the daily chart RSI is bouncing up from oversold levels, signaling scope for a corrective rally.

As a result, the pair may challenge the descending (bearish) 10-day moving average (MA) of 141.10 in the next couple of hours.

4-hour chart

Trend: Corrective bounce

Pivot levels