GBP/JPY Daily Chart 5/22 (click to enlarge) Going Above the 2014-High:The GBP/JPY just cracked the 2014-high and tagged 190 during the 5/21 session. There is a bearish divergence with the RSI as price retreats in the intra-session time-line. A bullish market should see support at or above 187. A break below 186 and below the rising trendline from mid-April might neutralize the bullish market and put downward pressure in the short-term back towards the 181 area. GBP/JPY 4H Chart 5/22(click to enlarge) False Breakdown; Bullish Breakout: We have talked about this false breakdown before - about how it might translate into a bullish breakout especially with the prevailing trend sharply upwards since mid-April. This is exactly what happened. Now, price is retreat after tagging 190. Price action to the downside so far is indicative of simply a pullback. With the bullish wind on its back, the GBP/JPY should find support at or above the 188 pivot. GBP/JPY 1H Chart 5/22(click to enlarge) Flag Pattern; Bullish Scenario: The 1H chart shows that the current retreat from 190 is in the form of a flag pattern. Again, we can see that 188 is probably a key support level. 188.60 is also a possible resistance turned into support. The 1H RSI should hold above 40 if the pullback is to be within the bullish outlook. Then, a break above 189.50 should signal a bullish continuation breakout in the !H chart, and confirm the bullish breakout seen in the 4H chart .