GBPJPY – Steep downtrend breaks below psychological 140.00 support

Slobodan Drvenica Windsor Brokers

GBPJPY

The cross is holding in steep downtrend for the third straight day, as strong demand for safe haven yen maintains pressure on the pair. Fresh acceleration lower on Friday dented psychological 140.00 support, opening way towards key support at 138.66 (12 June low) to fully retrace 138.66/147.77 recovery rally. Daily studies are full bearish setup and maintain strong downside pressure, with additional bearish signal coming from formation of 10/200SMA death-cross. Close below 140.00 will be an additional bearish signal, as the pair is on track for the third straight bearish weekly close. However, daily RSI and slow stochastic entered oversold territory and corrective action on profit-taking / oversold studies could be expected in coming sessions. Likely scenario could be seen as hesitation on approach to key 138.66 support.

Res: 140.40; 140.86; 141.09; 141.62
Sup: 139.84; 139.19; 139.00; 138.66

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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