GBP/JPY Price Analysis: Breaks 162.50 support confluence to renew 13-day low
- GBP/JPY stays offered at two-week low, extends the previous day’s losses.
- Clear break of 100-DMA, ascending trend line from May joins downbeat oscillators to favor sellers.
- Bulls need a successful run-up beyond 166.35 to retake control.
GBP/JPY stands on slippery grounds as bears smash the 162.50 support confluence heading into Friday’s European session. With this, the cross-currency pair also renews the two-week low while extending the previous day’s losses.
In addition to the break of the 100-DMA and an 11-week-old ascending trend line, the bearish MACD signals and downbeat RSI (14) also keep GBP/JPY sellers hopeful.
That said, an upward sloping trend line from early March, near 161.20 lures the bears before the 50% Fibonacci retracement of March-June upside, near 159.85.
However, the 200-DMA level of 158.34 could challenge the GBP/JPY sellers afterward.
Alternatively, recovery remains elusive below 162.50, a clear upside break of which could direct the GBP/JPY bulls towards the weekly resistance area near 166.30-35.
It should be noted that the highs marked in June, around 167.85 at the latest, could act as a buffer during the pair’s run-up towards the yearly peak of 168.73.
Overall, GBP/JPY flashed signals of further downside but there prevails a little room to the south.
GBP/JPY: Daily chart
Trend: Further weakness expected
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.
