GBP/JPY Price Analysis: Bearish correction looking to extend below 149.50
|- GBP/JPY drops to test last week's lows amid a weaker pound across the board.
- A consolidation under 149.65 would clear the way to more losses.
The GBP/JPY bottomed at 149.42 on Thursday, and then it rose back above the 149.60 area, keeping losses limited. A consolidation below 149.60 would clear the way to more losses, initially targeting the 149.00/10 zone.
The pound needs to hold above 149.60 to avoid deterioration in the already negative technical outlook. The MACD and oscillators point to weakness ahead.
An immediate resistance is seen at 150.20 while above at 150.60/70, a more relevant technical level is seen. The mentioned area consists of a horizontal resistance and also the 21-SMA in the four hours chart. A firm break above, should improve the outlook for the pound.
GBP/JPY 4-hour chart
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.