GBPJPY Turns Bullish as Inverse Head and Shoulders Activates

In today’s technical analysis, let’s take a closer look at British Pound to Japanese Yen, where the technical picture has turned clearly more constructive. The week started with strength in the Japanese yen, but that momentum has now faded. As we move into Thursday, the yen is giving back its gains, and this shift is translating into a strong upswing on GBPJPY, highlighting a change in short-term and medium-term sentiment.

From a technical standpoint, price action has been very precise. Over the past few days, the pair has formed an inverse head and shoulders pattern, a well-known bullish reversal structure. This formation is already active, as the price broke above the orange neckline, triggering an initial buy signal. Importantly, this was not a one-off move. Overnight, the market came back to retest the neckline as support, and that test was clearly successful, with buyers stepping in and pushing the price higher again.

The last key hurdle before a stronger bullish phase is the red downtrend line, which connects the most recent lower highs and has been limiting upside attempts. A daily close above this red resistance would complete the bullish setup and confirm a proper long-term buy signal. If that happens, GBPJPY could enter a much stronger upside phase. As long as the price remains above the neckline, the overall sentiment stays positive, with buyers holding the technical advantage.

Source: https://www.axiory.com/analytics/technical-analysis/gbpjpy-turns-bullish-as-inverse-head-and-shoulders