GBP/JPY Price Analysis: Sellers keep attacking 100-day SMA
|- GBP/JPY bounces off an intraday low of 135.56 but prints mild losses on a daily chart.
- Bearish MACD, sustained break of a four-month-old ascending trend line keeps the sellers hopeful.
- 50-day SMA adds to the upside barrier, 61.8% of Fibonacci retracement on the bears’ radars.
GBP/JPY marks another U-turn from 100-day SMA while taking rounds to 135.70/65 during Wednesday’s Asian session. Even so, the pair’s weakness after breaking an upward sloping trend line from May 18, coupled with the bearish MACD, suggests the quote’s further downside.
As a result, fresh selling may wait for a daily closing past-100-day SMA level of 135.68. In doing so, the bears may target 61.8% Fibonacci retracement of the pair’s May-September upside around 134.44.
Though, the July 24 bottom near 135.00 may offer intermediate halts during the GBP/JPY fall.
Alternatively, an upside clearance of the multi-day-old resistance line, previous support, around 136.85 will need to cross the 50-day SMA level of 137.85 to convince the buyers.
Also acting as upside barriers are the August 21 low of 138.25 and the June month’s top close to 139.75.
GBP/JPY daily chart
Trend: Bearish
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.