GBP/JPY PRICE ANALYSIS: PULLING BACK WITHIN BROADENING FORMATION

• GBP/JPY has likely formed a Broadening topping pattern. 
• It has just reversed after touching the top of the pattern and looks poised for a down-leg. 
• The overall long-term trend, however, is bullish with a breakout from the pattern required to reverse. 

GBP/JPY appears to be forming a bearish Ascending Broadening Wedge formation. The pair has just rallied to the pattern’s upper boundary line before forming a double top and pulling back. There is now a good chance it has begun the next down-leg of the pattern. 

A decisive break below support at the 187.96 March 11 lows and the nearby 50-day Simple Moving Average (SMA) would confirm a continuation of the next down leg within the wedge.