GBP/JPY Price Analysis: Renews weekly low past 183.00 on rising wedge confirmation, ignores strong yields

• GBP/JPY eyes the biggest daily loss in a week after confirming bearish chart formation, pressured around intraday low of late.
• US 10-year, two-year Treasury bond yields refresh three-month high amid hawkish Fed bets, recession woes.
• Theoretical target of 180.90 can prod GBP/JPY bears on their way to 180.00 psychological magnet.
• Bulls have a long road to travel before retaking control, 184.00 is the key.

GBP/JPY takes offers to refresh the weekly low around 182.70 heading into Thursday’s London open. The cross-currency pair's latest weakness could be linked to the market's risk-off mood. However, the firmer yields should have prod the quote of late.

Also read: Asian stocks drop as S&P500 Futures slide to 4,470, US Treasury bond yields refresh three-month high

In doing so, the cross-currency pair justifies the previous day’s confirmation of the one-week-old rising wedge bearish chart pattern. Additionally favoring the pair sellers is the quote’s sustained break of the 200-Hour Moving Average (HMA), as well as the bearish MACD signals.

That said, the GBP/JPY becomes vulnerable to testing the rising wedge’s theoretical target of around 180.90. However, the late June swing high near 181.50 and the 180.00 round figure are extra filters toward the south that gain the market’s attention.

Meanwhile, the June 20 swing low of around 179.90 appears the last defense of the short-term GBP/JPY buyers.

On the flip side, 200-HMA and the bottom line of the aforementioned wedge limit short-term recovery of the GBP/JPY pair around 183.10 and 183.20 in that order.

Following that, an upward-sloping support line from June 21 and the stated wedge’s top line, respectively near 183.50 and 184.05, can challenge the GBP/JPY buyers before giving them control.

GBP/JPY: Hourly chart

Trend: Further weakness expected