GBP/JPY Technical Analysis: Set-up points to an extension of the bearish trend

   •  The cross reversed a dip to the 144.00 neighborhood, or fresh monthly lows, and rallied around 85-pips, albeit struggled to build on the momentum beyond 50-hour SMA. 

   •  Currently hovering around mid-144.00, the cross has been oscillating in a trading range held since the US trading session on Thursday, forming a rectangle on hourly charts.

   •  Given that the cross has been struggling to register any meaningful recovery, the rectangular formation might be categorized as a continuation pattern and seen as a pause in the trend.

   •  Technical indicators on hourly/daily charts have also failed to recover from the bearish territory and add credence to the negative outlook amid the latest UK political turmoil/Brexit uncertainties.

   •  However, it would be prudent to wait for a convincing breakthrough the mentioned range, and a follow-through selling below the 114.00 handle, before positioning for any further depreciating move.
 

GBP/JPY 1-hourly chart