GBP/JPY Price Analysis: Double top in the making, targets 153.80

• Wednesday’s choppy session witnessed GBP/JPY moving towards February 22 daily low at 155.50.
• The British pound weakened in the session, benefitting safe-haven peers.
• GBP/JPY is downward biased as a double-top chart pattern looms, with a target of 153.80.

The GBP/JPY is subdued on Wednesday’s choppy trading session, as market sentiment fluctuated between risk-on/off. The GBP/JPY is trading at 155.73.

The market sentiment is downbeat as US equity indices fell 1.38% and 2.60%. In the FX space, the mood is mixed, as safe-haven peers like the US dollar, the Japanese yen, and the Swiss franc edged up vs. the British pound.

GBP/JPY Price Forecast: Technical outlook

GBP/JPY daily chart depicts a double-top, following the rally from January 24 low at 152.90, to February 10 high at 158.06. That said, in the last five days, the risk-off market mood boosted the prospects of the JPY, leading to a leg-down followed by a sudden spike to the 157.00 area retreating afterward to current levels.

Therefore, the GBP/JPY is downward biased, despite the daily moving averages (DMAs) residing below the spot price. Further, the double top’s target would be 153.50, 50-pips above the 200-DMA. That said, the GBP/JPY first support would be the “neckline” around 155.50. Breach of the latter would expose the 50-DMA at 155.27, followed by the 100-DMA at 154.37, and then the 153.80 double-top target.