GBP/JPY technical analysis: Bounces off lows, still in the red below 134.00 handle
|- On offers for the second consecutive session amid reviving safe-haven demand.
- Technical set-up support prospects for the emergence of dip-buying at lower levels.
The GBP/JPY cross extended previous session's corrective slide from over two-month tops and remained under some selling pressure for the second consecutive session on Monday.
A sustained break below 200-hour SMA was seen as a key trigger for bearish traders amid reviving safe-haven demand and a follow-through weakness below the 134.00 round-figure mark.
Despite the pullback, the cross showed some resilience below 23.6% Fibo. level of the 126.67-135.75 move up, near the 133.35 support area, which should act as a pivotal point for short-term traders.
Meanwhile, technical indicators on the 1-hourly chart are already flashing oversold conditions and thus, warrant some caution for aggressive bearish traders amid receding fears of a no-deal Brexit.
Moreover, oscillators on the daily chart have managed to hold in the bullish territory, though have been losing positive momentum, and support prospects for the emergence of dip-buying interest.
Failure to defend the mentioned support might prompt some aggressive selling and accelerate the slide further towards the 133.00 handle en-route 38.2% Fibo. level support near the 32.30-25 region.
On the upside, the 134.00 round-figure mark now seems to act as immediate support, above which the cross is likely to make a fresh attempt towards conquering the key 135.00 psychological mark.
GBP/JPY 1-hourly chart
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