GBPJPY maintains a bearish outlook near the lowest levels since August 2013. The pair has been falling sharply since November 2015, making lower highs and lower lows until reaching 151.63.
The thick Ichimoku cloud above the market will likely cap any gains. Prices tested the 50% Fibonacci retracement at 157.00 on Tuesday before turning back down. This is the retracement of the downleg from 162.48 to 151.63 (March 29 to April 7 decline). The tenkan-sen and kijun-sen lines are negative aligned, suggesting the recent bounce from 151.63 should be viewed as a corrective bounce. The RSI is below 50 in bearish territory which also indicates that any gains are likely to run out of momentum in the short term.
Important support lies at 151.63, which if broken, could see a resumption of the downtrend that started in November 2015. The 157.00 level (50% Fibonacci) remains a key immediate resistance level.
All three moving averages are falling, which also highlight the underlying bearish market structure.
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