GBP/JPY outlook: Pullback extends as yen rallies on increased safe-haven demand
|GBP/JPY
Friday's fresh acceleration lower generates initial reversal signal after Thursday's action ended in red and left bearish inside day, warning that bulls lost traction on approach to key Fibo barrier at 136.69 (61.8% of 139.73/131.76). Yen was inflated by China's retaliation and request that the US shuts one consulate in China that raised tensions and prompted traders into safety. Fresh bears extended below broken Fibo support at 135.75 and penetrated thinning daily cloud which also attracts (cloud top lays at 135.25). Next pivotal support at 134.76 (Fibo 38.2% of 131.76/136.62 / 20DMA) is in focus and break here would signal reversal and allow for deeper fall towards next key support at 134.00 zone (daily higher base, reinforced by 55DMA). Fading bullish momentum and daily stochastic heading south after reversing from overbought territory, support scenario.
Res: 135.47; 135.92; 136.20; 136.69
Sup: 135.10; 134.76; 134.00; 133.62
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