GBP/JPY technical analysis: Flat lined above 140 despite flag breakout

• GBP/JPY is struggling to capitalize on a bull flag breakout. 
• The immediate outlook stands neutralized and a move above 140.53 is needed to revive the bullish setup. 

GBP/JPY is struggling to post sustainable gains above 140 despite a bullish pattern on technical charts. 

The currency pair jumped to 140.53 in the US trading hours on Tuesday, confirming a flag breakout on the 4-hour chart. The breakout signaled a resumption of the rally from lows near 130.50 seen on Oct. 8 and opened the doors for a retest of the recent high of 141.50. 

Even so, the rise to 140.53 was short-lived and the pair quickly fell back to 139.90. The immediate outlook, therefore, stands neutralized. A break above 140.53 is now needed to validate the flag breakout. 

As of writing, the pair is trading largely unchanged on the day around 140.00.

The bulls need progress soon, else the flag breakout may fail, inviting stronger selling pressure. 

Daily chart

Trend: Neutral

Technical levels