Downward pressure mounts as a bearish-engulfing pattern looms

• GBP/JPY slides over 0.60%, trading around 182.42 after reaching a daily high of 186.05.
• Ichimoku Cloud (Kumo) and Chikou Span indicate bearish signals for the pair.
• Key support and resistance levels identified amidst the current market dynamics.

The GBP/JPY halted its rally and slid more than 0.60% on Thursday after hitting a daily high of 186.05, but high inflation data from the United States (US) spurred a risk-off impulse, as shown by US equities registering losses. At the time of writing, the cross-currency pair exchanges hands at 182.42.

The daily chart portrays the pair as neutral to downward biased, as the GBP/JPY dropped inside the Ichimoku Cloud (Kumo) and the Chikou Span broke below the price action, two bearish signals. To further reinforce the downtrend, the pair must drop below the Senkou-Span B at 182.39, followed by the Kijun-Sen’s confluence and the Kumo’s bottom at around 181.39. A breach of the latter would expose the Tenkan-Sen at 180.92.

Conversely, if GBP/JPY reclaims the 183.00 are, that could open the door and challenge the psychological 184.00 mark.

GBP/JPY Price Action – Daily chart

GBP/JPY Key Technical Levels