GBP/JPY Price Analysis: Bear flag breakdown on 4H

• GBP/JPY looks south, as the 4-hour chart shows a bearish continuation pattern. 
• The pair risks revisiting recent lows near 134.40.

GBP/JPY is currently trading at 135.26, representing a 0.32% decline on the day. 

The pair could suffer deeper losses during the day ahead as the 4-hour chart shows a bear flag breakdown. 

The pattern indicates that the minor bounce from the Oct. 30 low of 134.40 has ended and the bigger decline from the Oct. 22 high of 137359 has resumed. 

The flag breakdown is backed by a below-50 or bearish reading on the 4-hour chart relative strength index. 

As such, a re-test of 134.40 cannot be ruled out. A move above 136.00 is needed to invalidate the bearish bias. 

4-hour chart

Trend: Bearish

Technical levels