GBP/JPY Price Analysis: Probes confluence of key Fib and SMA

• GBP/JPY tests confluence of key technical levels at 136.74. 
• A move above Oct. 19's high is needed to confirm a breakout.

GBP/JPY is currently trading near resistance at 136.74, representing a 0.10% gain on the day, having picked up a bid at 136.39 early Wednesday. 

The resistance at 136.74 marks the confluence of the 10-day simple moving average (SMA) and the 38.2% Fibonacci retracement of the sell-off from the Sept. 1 high of 142.71 to Sept.22 low of 133.04. 

Acceptance above that level would expose the Oct. 19 high of 137.26. A close higher would invalidate the bearish view put forward by the long tail attached to Oct. 19's daily candle and yield stronger gains. 

Alternatively, a failure to take out resistance at 136.74, if followed by a move below 136.39 (Asian session low) would confirm a reversal lower, and open the doors to 135.74 (Oct. 16 low). 

Daily chart

Trend: Neutral

Technical levels