GBP/JPY Price Analysis: Bears approach 200-SMA surrounding 163.00

GBP/JPY extends the previous day’s pullback from 38.2% Fibonacci retracement.
200-SMA, seven-week-old support line restrict short-term downside.
Bulls have multiple hurdles before challenging the yearly top.

Anil Panchal FXStreet

GBP/JPY remains pressured towards the 200-SMA as it extends the previous day’s losses to 163.40 during Wednesday’s Asian session. In doing so, the cross-currency pair justifies the recent pullback from the 38.2% Fibonacci retracement level of the August-September upside.

Given the downbeat MACD and RSI (14), are not oversold, the GBP/JPY prices are likely to stay depressed, which in turn favors the odds of breaking the 200-SMA support near 163.00.

However, the 61.8% Fibonacci retracement level and an upward sloping support line from early August, respectively near 162.45 and 161.75, could challenge the GBP/JPY bears afterward.

Should the cross-currency pair drop below 161.75, the bears can aim for the monthly low surrounding 160.65 before directing the sellers towards the 160.00 psychological magnet.

Alternatively, the 38.2% Fibonacci retracement level near 164.30 appears the immediate hurdle for the GBP/JPY buyers to tackle.

Following that, multiple resistances are there between 166.00 and 168.80 to challenge the bulls, a break of which could quickly refresh the yearly top surrounding the 170.00 level.

Overall, GBP/JPY is likely to witness further downside but the room to the south is limited.

GBP/JPY: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	163.42
Today Daily Change	-0.22
Today Daily Change %	-0.13%
Today daily open	163.64

Trends
Daily SMA20	163.43
Daily SMA50	163.27
Daily SMA100	163.07
Daily SMA200	160.12

Levels
Previous Daily High	163.84
Previous Daily Low	162.94
Previous Weekly High	167.22
Previous Weekly Low	162.75
Previous Monthly High	163.99
Previous Monthly Low	159.45
Daily Fibonacci 38.2%	163.5
Daily Fibonacci 61.8%	163.29
Daily Pivot Point S1	163.11
Daily Pivot Point S2	162.57
Daily Pivot Point S3	162.21
Daily Pivot Point R1	164.01
Daily Pivot Point R2	164.37
Daily Pivot Point R3	164.9

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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