GBP/JPY Price Analysis: 140.85/80 questions the breakdown of 100-day SMA
|- GBP/JPY struggles around near-term horizontal support.
- Buyers will look for entry beyond 100-day SMA.
- A downside break can take aim at 50% Fibonacci retracement.
GBP/JPY pulls back from seven-week low while trading around 140.30 during Friday’s Asian session. Even so, the pair nears the key horizontal support established since early December 2019 after the quote slipped below 100-day SMA the previous day.
Hence, sellers will look for entry below 140.85/80 support while targeting 50% Fibonacci retracement of October-December 2019 upside, near 139.20.
However, pair’s further declines could be questioned around 138.70, if not then 61.8% of Fibonacci retracement close to 137.10 will be on the bears’ radars.
On the upside, buyers will refrain from entering unless GBP/JPY prices bounce back beyond a 100-day SMA level of 141.85.
In doing so, 142.60, 143.40 and 23.6% Fibonacci retracement level of 143.83 can offer intermediate halts during the recovery challenging the monthly high close to 145.00.
GBP/JPY daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.