GBP/JPY Price Analysis: Clings to 50-DMA amid bearish MACD
- GBP/JPY sellers flirt with short-term key moving average following three-day downtrend.
- Bearish MACD, U-turn from crucial resistance line favor sellers.
- Momentum signals need for clear breakdown to highlight 151.60-70 support area.
GBP/JPY holds lower ground near one week low after declining for third consecutive days till Tuesday morning in Asia. That said, the cross-currency pair seesaws around 50-DMA while flashing 153.52 as a quote.
Given the pair’s sustained reversal from a monthly resistance line, backed by bearish MACD, GBP/JPY is likely to remain depressed. However, the recent bounce of the Momentum line probes the pair sellers.
Hence, a clear downside break of 153.50 becomes necessary for the latest downside to sustain.
Following that, a convergence of 100-DMA and an ascending support line from late February, around 151.70-60 will be in the spotlight. It’s worth noting that the quote may take a breather around 152.00 during the stated fall.
Alternatively, the 154.00 threshold and a downward sloping trend line from late May, near 155.00, could test the recovery moves targeting a fresh high of the year above 156.06.
Also acting as an upside filter is the previous week’s top surrounding 155.15-20.
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.
