GBP/JPY technical analysis: Moves little post-UK PMI, hangs near multi-month lows ahead of BoE
|- The GBP/JPY cross extended its overnight rejection slide from the 133.00 congestion zone and is now flirting with a short-term ascending trend-line support.
- The cross moved little post-UK manufacturing PMI and remained well within the striking distance of multi-month lows, set earlier this week on Tuesday.
Meanwhile, technical indicators on hourly charts have recovered from the oversold territory and maintained their bearish bias, supporting prospects for an eventual breakdown and an extension of the near-term depreciating move.
Sustained weakness below mid-131.00s - coinciding with early-January swing lows, will reinforce the negative outlook and turn the cross to break through the 131.00 handle to test its next support near the 1.3065 region.
The downfall could further get extended towards challenging the key 130.00 psychological mark, albeit oversold conditions on the daily chart might turn out to be the only factor helping limit deeper losses, at least for some time.
Alternatively, any attempted recovery now seems to confront some fresh supply near the 132.45-50 region, above which a bout of short-covering might assist the cross to aim back towards reclaiming the 133.00 round figure mark.
GBP/JPY 1-hourly chart
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.