GBP/JPY Technical Analysis: Triangle breakout fails courtesy of risk-off

GBP/JPY closed at 146.36 Friday, confirming a descending triangle breakout on the daily chart.

That bullish development, however, is no longer valid, as the pair has re-entered the triangle pattern and is currently trading in the red at 145.10.

The failure to capitalize on Friday's bull breakout could be associated with Trump's renewed China trade threat and the resulting flight to safety.

With the failed breakout, the immediate bullish outlook stands neutralized. The focus would shift to the recent low of 143.75 should the risk-off yield a move below Friday's low of 144.81. On the higher side, a break above Friday's high of 146.51 is needed to revive the bullish view.

Daily chart

Trend: Neutral

Pivot points