GBP/JPY Price Analysis: Bearish impulse eyes 150.00
|- GBP/JPY sellers attack two-month low, nears 78.6% Fibonacci retracement support.
- Bearish MACD, failures to hold 200-DMA highlight ascending trend line from July.
- Monthly resistance line, 50% Fibo. add to the upside filters.
GBP/JPY takes offers around 150.55, the lowest levels since October 04, during early Tuesday morning in Europe. In doing so, the cross-currency pair not only reverses the previous day’s corrective pullback but also braces for the biggest monthly fall since September 2020.
That said, the sellers cheer downside break of 200-DMA and 61.8% Fibonacci retracement (Fibo.) of July-October advances amid bearish MACD signals.
Hence, the latest declines are likely to last longer with the 78.6% Fibo. level near 150.50 acting as the immediate support.
Adding to the downside filters is a four-month-long support line near the 150.00 round figure, a break of which will make the quote vulnerable to test September’s low of 148.95.
Alternatively, 61.8% Fibonacci retracement level and 200-DMA, respectively near 152.50 and 153.65, restrict the short-term upside of the pair.
However, GBP/JPY bulls may not take risk of entries until witnessing a clear upside break of a descending resistance line from October 21, around 153.80 by the press time.
GBP/JPY: Daily chart
Trend: Further weakness 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.