GBP/JPY technical analysis: On the defensive but falling wedge breakout is still valid

• GBP/JPY eyes gain toward 138.50 with the 4-hour chart reporting a falling wedge breakout. 
• A break below 137.40 is needed to invalidate the bullish setup. 

With the US Dollar gaining ground against majors except for the Japanese Yen, the GBP/JPY pair has dipped below 138.00. Despite the 0.15% drop, the outlook remains bullish, as the falling wedge breakout or the bearish-to-bullish trend change confirmed on June 5 is still valid. 

The pair, therefore, remains on the hunt for 138.73 (resistance as per the 4-hour chart). Supporting the bullish case is the impending bullish crossover of the 5- and 10-day moving averages (MAs). 

The outlook, however, would turn bearish if the 4-hour chart rising trendline support, currently at 137.40, is breached. 

4-hour chart

Trend: Bullish

Pivot points