GBP/JPY Price Analysis: Adds 40 pips but bear bias intact

GBP/JPY prints gain in Asia as the S&P 500 futures rise.
Friday's downside break of key trendline remains valid.

Omkar Godbole FXStreet Contributor

GBP/JPY is currently trading at 132.55, having put in a low of 132.08 during the early Asian trading hours.

The bounce could be associated with the good news related to coronavirus vaccine and the recovery in the S&P 500 futures.

That said, bearish bias put forward by Friday's downside break of the trendline connecting March 19 and May 18 lows is still intact. At press time, the ascending trendline is located at 133.15. That level is currently housing the 10-day SMA.

A close above 133.15 is needed to invalidate bearish pressures. That, however, looks unlikely with the 14-day relative strength index (RSI) reporting bearish conditions with a below-50 print. In addition, bearish sentiment looks quite strong if we take into account Friday's red marubozu candle.

A failure to keep gains seen at press time would only validate Friday's downside break of the ascending trendline and open the doors for a slide to 130.00.

Daily chart

Trend: Bearish

Technical levels

GBP/JPY

Overview
Today last price	132.54
Today Daily Change	0.26
Today Daily Change %	0.20
Today daily open	132.28

Trends
Daily SMA20	134.98
Daily SMA50	133.34
Daily SMA100	134.79
Daily SMA200	137.59

Levels
Previous Daily High	133.28
Previous Daily Low	132.04
Previous Weekly High	133.99
Previous Weekly Low	131.77
Previous Monthly High	135.08
Previous Monthly Low	129.32
Daily Fibonacci 38.2%	132.52
Daily Fibonacci 61.8%	132.81
Daily Pivot Point S1	131.79
Daily Pivot Point S2	131.3
Daily Pivot Point S3	130.56
Daily Pivot Point R1	133.02
Daily Pivot Point R2	133.77
Daily Pivot Point R3	134.26

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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