GBP/JPY Price Analysis: Holding former hurdle-turned-support

• GBP/JPY is flirting with key support at 134.00. 
• A strong bounce from 134.00 is needed to revive the bullish setup.

GBP/JPY's pullback from Thursday's high of 134.70 looks to have stalled near 134.00 - the neckline resistance of the double top pattern, which was breached to the higher side on Wednesday. 

The pullback to the former hurdle-turned-support has neutralized the immediate bullish setup put forward by Wednesday's double bottom breakout. 

The bullish outlook would be revived if the neckline support fuels a move above 134.70. That would validate the falling wedge breakout, a bullish reversal pattern confirmed last week, and open the doors for 136.00. 

However, if sellers succeed in establishing a strong foothold below the neckline support of 134.00, a bigger decline toward 132.70 could be seen. At press time, the pair is trading largely unchanged on the day near 134.05. 

A bearish move below 134.00 cannot be ruled out, as the long upper wick attached to Thursday's daily candle is suggestive of buyer exhaustion. 

4-hour chart

Trend: Neutral

Technical levels