- 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
Additional important levels
|Today last price||159.99|
|Today Daily Change||-0.99|
|Today Daily Change %||-0.61%|
|Today daily open||160.98|
|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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