GBP/JPY Price Analysis: Clings to 50-DMA amid bearish MACD
|- GBP/JPY sellers flirt with short-term key moving average following three-day downtrend.
- Bearish MACD, U-turn from crucial resistance line favor sellers.
- Momentum signals need for clear breakdown to highlight 151.60-70 support area.
GBP/JPY holds lower ground near one week low after declining for third consecutive days till Tuesday morning in Asia. That said, the cross-currency pair seesaws around 50-DMA while flashing 153.52 as a quote.
Given the pair’s sustained reversal from a monthly resistance line, backed by bearish MACD, GBP/JPY is likely to remain depressed. However, the recent bounce of the Momentum line probes the pair sellers.
Hence, a clear downside break of 153.50 becomes necessary for the latest downside to sustain.
Following that, a convergence of 100-DMA and an ascending support line from late February, around 151.70-60 will be in the spotlight. It’s worth noting that the quote may take a breather around 152.00 during the stated fall.
Alternatively, the 154.00 threshold and a downward sloping trend line from late May, near 155.00, could test the recovery moves targeting a fresh high of the year above 156.06.
Also acting as an upside filter is the previous week’s top surrounding 155.15-20.
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.