GBP/JPY Price Analysis: Bears challenge over one-week-old ascending channel support

• GBP/JPY extended the previous day’s retracement slide from six-month tops.
• The technical set-up supports prospects for the emergence of some dip-buying.
• Bulls might now wait for a sustained move back above the 142.00 round-figure.

The GBP/JPY cross lacked any firm directional bias and seesawed between tepid gains/minor losses, just above mid-141.00s through the early North American session.

The lower end of the daily trading range coincides with over one-week-old ascending trend-channel and is closely followed by 100-hour SMA, around the 141.25 region. A convincing breakthrough the mentioned support levels will be seen as a fresh trigger for bearish traders and set the stage for an extension of the retracement slide from Tuesday's six-month tops.

Meanwhile, technical indicators on the daily charts have already eased from the overbought territory and maintained their bullish bias on the 4-hourly chart. The set-up supports prospects for the emergence of some dip-buying at lower levels and warrants some caution before placing aggressive bearish bets or positioning for any meaningful decline.

On the flip side, the 142.00 round-figure mark now becomes immediate strong resistance. A sustained strength beyond has the potential to lift the cross back towards the overnight swing high, around the 142.00 round-figure mark. Bulls might then aim for a move beyond the 143.00 level, possibly towards reclaiming the 144.00 mark for the first time since February.

GBP/JPY 4-hourly chart

Technical levels to wtach