GBPJPY fell to its lowest level since August 2013 last week on Thursday, to reach 151.63. Prices have since stabilized and paused the decline as momentum reached oversold levels – RSI dipped just below 30. This suggests that there will be some consolidation and a possible pullback in the near term before heading lower.
The technical picture looks bearish, with all three moving averages sloping down (50,100 and 200-day moving averages). Prices have been making lower highs and lower lows since the November peak 2015 of 188.79. Meanwhile, the market is below the Ichimoku cloud, which also highlights the bearish bias.
Immediate support lies at the multi-year low of 151.63 but a violation of this would expose 150.00. Alternatively, a bounce higher from current levels would target an important resistance area at 155.00.
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