GBP/JPY Price Analysis: Bears catch a breather around two-week-old support line
|- GBP/JPY stays heavy around a short-term support line after breaking 136.00 threshold.
- Bearish MACD, sustained trading below 200-bar SMA keeps the sellers hopeful.
- Buyers will have multiple upside barriers below 139.00.
GBP/JPY drops to 135.87, down 0.25% intraday, during Friday’s Asian session. In doing so, the pair fades Thursday’s bounce off an ascending trend line from October 02 amid bearish MACD signals. The sellers also have an additional plus point in the form of the quote’s weakness below 200-bar SMA.
Hence, GBP/JPY bears targeting the monthly low near 135.00 are rolling their sleeves to break the immediate trend line support of 135.80.
During the pair’s further downside past-135.00, 134.60 and 133.50 can entertain the traders ahead of directing them to September month’s bottom surrounding 133.00.
Alternatively, a confluence of 38.2% Fibonacci retracement of GBP/JPY declines during September and 200-bar SMA near 136.70/75, offers immediate key resistance.
Following that the monthly high and 50% Fibonacci retracement can entertain bulls around 137.85 before highlighting September 10 peak close to 138.40 and 61.8% Fibonacci retracement level close to 139.00.
GBP/JPY four-hour chart
Trend: Bearish
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