GBP/JPY is marching higher from a recent 155.60 low. However, price recoveries can be seen as launchpads for top-picking, according to Benjamin Wong, Strategist at DBS Bank.

A minor bearish head and shoulders top pattern looks plausible

“Seasonality for GBP/JPY is weak for the months May-August; hence we see price recoveries as launchpads for top-picking.”

“The moot question is whether this current rally offers an identical opportunity to short GBP/JPY, given the cross has been guided higher by a rising trendline from 127.63 since late March 2020. If the cross does not sustain a fresh challenge to surmount 168.43, the balance of odds fancies another shorting opportunity.”

“There is the image of a minor head & shoulders top to tap onto; but that needs affirmation of a proper neckline cut.”