GBP/JPY Price Analysis: Awaits positive follow-through to Wednesday’s bullish hammer

• GBP/JPY trsdes near 132.90 with a lack of clear directional bias.
• A move above 133.00 would confirm the bullish trend signaled by Wednesday's candle. 

GBP/JPY created a bullish hammer candle on Wednesday, but so far, that has failed to invite stronger buying pressure. 

At press time, the currency pair is flatlined around 132.90, having hit a high and low of 133.05 and 132.77, respectively, early Thursday. 

While a bullish hammer is widely considered an advanced warning of impending gains, seasoned traders usually wait for a follow-through in the form of a convincing move above the high of the positive candle. 

The focus, therefore, is on Wednesday’s high of 133. A sustained move above that level will likely invite more chart-driven buying, yielding a move above 134.00.

Alternatively, a break below 131.68 would confirm a head-and-shoulders breakdown on the daily chart and create room for a deeper slide to 130.00. 

Daily chart

Trend: Neutral

Technical levels