GBP/JPY Price Analysis: Bears jump back from 160.80 resistance confluence


  • GBP/JPY drops the most in a week while reversing from the key hurdle.
  • Convergence of 21-DMA, fortnight-long descending trend line guards immediate upside.
  • 61.8% Fibonacci retracement level lures bears, 164.30 appears strong resistance.

GBP/JPY stands on the slippery ground as it renews its intraday low near 159.90 during early Thursday morning in London. In doing so, the cross-currency pair prints the first daily loss in five while declining the most in a week.

That said, the pair buyers’ inability to cross the 21-DMA and a two-week-old descending trend line, around 160.80, triggered the quote’s U-turn.

Also adding strength to the downside bias is the looming bear cross between the 50-DMA and the 100-DMA and the former pierces off the latter from above.

With this, the GBP/JPY price is declining towards the last Thursday’s swing low, around 158.50, before directing the bears to the 61.8% Fibonacci retracement level of the September-October upside of the pair, near 157.70.

In a case where the quote remains bearish past 157.70, a downwards-loping support line from December 20, near 153.25, will be important to watch.

On the flip side, the 50% Fibonacci retracement near 160.50 could act as immediate resistance before the 160.80 key hurdle mentioned previously.

It’s worth noting, however, that the GBP/JPY bulls remain off guard unless the quote stays below the 164.30 resistance confluence, encompassing the 50-DMA and 100-DMA.

Overall, GBP/JPY is likely to decline further even if it manages to cross the nearby resistance.

GBP/JPY: Daily chart

Trend: Bearish

Additional important levels

Overview
Today last price 159.99
Today Daily Change -0.99
Today Daily Change % -0.61%
Today daily open 160.98
 
Trends
Daily SMA20 160.84
Daily SMA50 164.37
Daily SMA100 164.27
Daily SMA200 163.7
 
Levels
Previous Daily High 161.22
Previous Daily Low 160.51
Previous Weekly High 160.18
Previous Weekly Low 155.36
Previous Monthly High 169.28
Previous Monthly Low 157.84
Daily Fibonacci 38.2% 160.95
Daily Fibonacci 61.8% 160.78
Daily Pivot Point S1 160.59
Daily Pivot Point S2 160.2
Daily Pivot Point S3 159.88
Daily Pivot Point R1 161.3
Daily Pivot Point R2 161.61
Daily Pivot Point R3 162

 

 

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