GBP/JPY Price Analysis: Extends break of three-week-old support line below key SMAs

GBP/JPY stays mildly offered near the intraday low after Tuesday’s heavy losses.
100/200-day SMA confluence offers immediate resistance ahead of the ascending trend line from September 23.
61.8% Fibonacci retracement lures the bears amid normal RSI conditions.

Anil Panchal FXStreet

GBP/JPY drops to 136.26, down 0.15% intraday, during the initial hours of Tokyo open on Wednesday. In doing so, the pair stretches the previous day’s downside break of a short-term support line, now resistance, below the key SMA joint.

With the RSI not near the overbought/oversold conditions, the continuation of a current downside can’t be ruled out. As a result, the 61.8% Fibonacci retracement of June-September upside near 135.95 gains the market’s attention as nearby support.

In a case where the GBP/JPY sellers dominate past-135.95, the monthly low of 135.05 and the July 14 bottom surrounding 134.00 should return to the charts.

Alternatively, an upside clearance of 136.50/55 immediate resistance, marked by the joint of 100-day and 200-day SMAs, will propel the quote towards the previous support line and 50% Fibonacci retracement level around 137.25/30.

Also acting as the key upside barrier will be a 50-day SMA level of 137.76 that holds the key to GBP/JPY rise towards the late-August low near 138.25.

GBP/JPY daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	136.32
Today Daily Change	-0.14
Today Daily Change %	-0.10%
Today daily open	136.46

Trends
Daily SMA20	135.85
Daily SMA50	137.81
Daily SMA100	136.44
Daily SMA200	136.56

Levels
Previous Daily High	137.78
Previous Daily Low	136.38
Previous Weekly High	137.84
Previous Weekly Low	135.91
Previous Monthly High	142.72
Previous Monthly Low	133.05
Daily Fibonacci 38.2%	136.91
Daily Fibonacci 61.8%	137.24
Daily Pivot Point S1	135.97
Daily Pivot Point S2	135.47
Daily Pivot Point S3	134.57
Daily Pivot Point R1	137.37
Daily Pivot Point R2	138.27
Daily Pivot Point R3	138.77

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.

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