- GBP/JPY snaps three-day downtrend but lacks follow-through.
- 21-EMA, bearish MACD signals prod pair buyers even as upbeat yields, cautious optimism favor upside.
- Downbeat prints of preliminary readings of Q2 UK GDP, break of 50-EMA can convince sellers to retake control.
GBP/JPY retreats from intraday high as it struggles to defend the first daily gains in four amid the early hour of London open on Monday, mildly bid near 181.00 by the press time.
In doing so, the cross-currency pair justifies the fears about the UK’s employment and growth conditions while also taking clues from the upbeat Treasury bond yields and mixed chatters about the Bank of Japan’s (BoJ) exit from the ultra-easy monetary policy.
With this, the GBP/JPY pair jostles with the 21-day Exponential Moving Average (EMA) hurdle surrounding 181.30.
That said, the bearish MACD signals and the downbeat UK concerns keep the pair sellers hopeful of revisiting the 180.00 threshold. However, an upward-sloping support line stretched from early April, close to 179.60 by the press time, appears a tough nut to crack for the GBP/JPY bears to crack afterward.
Even if the quote drops below 179.60, the 50-EMA support of around 179.30 will act as the last defense of the buyers before directing the quote toward the previous monthly low of surrounding 176.30.
On the contrary, a daily closing beyond the 21-EMA hurdle of 181.30 isn’t an open invitation to the GBP/JPY bulls as a downward-sloping resistance line from early July, near 183.20 at the latest, could challenge the upside moves ahead of highlighting the yearly peak of 184.00 for buyers to watch.
GBP/JPY: Daily chart
Trend: Further downside expected
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