GBP/JPY Technical Analysis: Pullback may end up recharging engines for fresh leg higher

GBP/JPY's pullback from the recent high of 148.57 has taken the shape of a bull flag – a bullish continuation pattern, which often ends up accelerating the preceding bullish move. 

A move above 147.26 would confirm a flag breakout on the 4-hour chart and open the doors to re-test of 148.57 (March 1 high). The RSI on the 4-hour chart seems to have bottomed out below 50, meaning there is plenty room for a rally on potential flag breakout. 

The bullish case would weaken if the flag low of 146.61 is breached. 

4-hour chart

Trend: Bullish above 147.26