GBP/JPY technical analysis: Break of 138.65 confirms falling wedge on hourly chart

• Confirmation of the falling wedge can trigger fresh buying towards 140.00.
• 138.15 and 138.00 act as strong downside supports.

Although GBP/JPY traders near the lowest levels since mid-January by being around 138.50 during early Wednesday, the pair forms a short-term bullish technical formation on the hourly chart.

The upside signaling pattern gets confirmed on the break of 138.65 resistance-line, which in turn could trigger the quote’s rise towards 139.65 and then to 50% Fibonacci retracement of the latest downturn at 140.00.

Should there be increased buying past-140.00, 61.8% Fibonacci retracement near 140.40 and 140.85 can entertain bulls ahead of pleasing them with 141.75.

Meanwhile, latest low and the formation bottom offers strong support near 138.15, a break of which may ask 138.00 to validate further decline in the direction to 137.45/35 region comprising lows marked in January, except for January 03.

Moreover, pair’s extended south-run under 137.35 might not refrain from questioning the yearly low near 132.40.

GBP/JPY hourly chart

Trend: Pullback expected