GBP/JPY Price Analysis: Below 133.00 capped by trendline resistance

GBP/JPY remains capped below downward trending resistance at 133.45.
Pound suffers as the coronavirus and a new tariffs rift threaten the economic recovery.

Guillermo Alcala FXStreet

The pound has extended its reversal from Tuesday’s highs right above 134.00 with a nearly 0.4% decline, to session lows at 132.65. The daily charts show the pair on a clear downtrend channel, with upside attempts capped below trendline resistance from early June’s peak, now at 133.45 area.

Investor’s fears that a second wave of COVID-19 infections might derail economic recovery and news reports suggesting that the US would be weighing on imposing new tariffs on European imports have hammered risk sentiment on Wednesday, increasing demand for safe-havens like the Japanese yen.

On the downside, the sterling is being contained above June 23 low at 132.65 so far. Below here, bears might tighten their grip on the pair, and send it towards June 22 low at 131.75 before May 22 low at 130.70.

\On the upside, there is an important resistance level at 133.45/50 area, were the 50-day SMA meets the mentioned trendline resistance from early June highs. A breakthrough beyond that level might send the pair towards 134.60 (50% Fibonacci retracement of the February-March decline) and the 100-day SMA, at 135.00.

GBP/JPY daily chart

GBP/JPY key levels to watch

GBP/JPY

Overview
Today last price	132.87
Today Daily Change	-0.49
Today Daily Change %	-0.37
Today daily open	133.36

Trends
Daily SMA20	134.95
Daily SMA50	133.44
Daily SMA100	135.07
Daily SMA200	137.62

Levels
Previous Daily High	133.99
Previous Daily Low	132.6
Previous Weekly High	136.36
Previous Weekly Low	131.92
Previous Monthly High	135.08
Previous Monthly Low	129.32
Daily Fibonacci 38.2%	133.46
Daily Fibonacci 61.8%	133.14
Daily Pivot Point S1	132.65
Daily Pivot Point S2	131.93
Daily Pivot Point S3	131.26
Daily Pivot Point R1	134.04
Daily Pivot Point R2	134.71
Daily Pivot Point R3	135.43

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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