Pullback from YTD highs, as evening-star looms

• GBP/JPY retreats from the week’s peak of 188.24, trading around 187.00 amid emerging bearish chart patterns.
• The formation of an ‘evening star’ pattern near yearly highs indicates potential for further downside, with key supports at 186.41 and 186.04 in focus.
• A rebound above 188.00 could negate the bearish outlook, setting the stage for a test of the year-to-date high at 188.24 and possibly the 190.00 level.

GBP/JPY retraces from weekly highs reached on Wednesday at around 188.24 and hovers around the 187.00 figure late in the New York session, as a three-candle chart pattern emerges that could warrant further downside pressure on the pair.

In the near term, the GBP/JPY is consolidating near the year’s highs, though it’s forming an ‘evening-star’ chart pattern. However, sellers must reclaim the Tenkan-Sen at 186.41, alongside the November 14 swing low of 186.04 to exacerbate a deeper pullback below the Senkou Span A seen at 185.47, ahead of the Kijun-Sen at 184.52.

On the other hand, if buyers reclaim 188.00, that could open the door for further upside, with buyers targeting the year-to-date (YTD) high at 188.24, followed by the 190.00 mark.

GBP/JPY Price Analysis – Daily Chart

GBP/JPY Technical Levels