GBP/JPY is stuck between the 200-day simple moving average (SMA) and the 140.70 resistance, which is also the 61.8% Fibonacci of the downleg from 149.47 to 126.53.

Downside pressures seem to be strengthening as the RSI is heading down to meet its 50 neutral mark and the MACD continues to slip under its red signal line in the positive area.

The bears, though, need to drive under the 38.2% Fibonacci of 135.50, where the price previously topped, to bring into question the upward pattern that started from the 3-year low of 126.53. Such a move would also shift the medium-term picture from positive to neutral. Yet, this might not be easy as the area between the 200-day SMA and the 50% Fibonacci of 138.00 as well as the 136.50 barrier could reject any downside correction.

On the upside, the bullish action could gain new legs if the market spikes above the 140.70 resistance and the five-month high of 141.47. Moving higher, the 143.70 number could be another tough obstacle before all the attention turns to the descending trendline drawn from the 2018 high of 156.69, a break of which could trigger fresh buying, possibly sending the price up to 146.50.

In brief, GBPJPY is likely to remain under pressure in the short-term according to the falling technical indicators. However, to bring the market’s upward direction into doubt and downgrade the positive medium-term outlook, a sharper sell-off below 135.50 is required.


Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Analysis feed

Latest Forex Analysis

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.


GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.


USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.


US Dollar Index: DXY suck at monthly highs near 98.40 level

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

US Dollar Index News

Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Forex Majors