GBP/JPY Price Analysis: Key DMAs test bears above 163.00

GBP/JPY pauses four-day downtrend at a fortnight low.
Impending bearish MACD signals, downbeat RSI keeps sellers hopeful.
A convergence of 21-DMA and 50-DMA precedes 100-DMA to restrict immediate downside.

Anil Panchal FXStreet

GBP/JPY remains defensive around 163.30, holding lower ground near the two-week bottom heading into Monday’s European session. In doing so, the cross-currency pair jostles with multiple key Daily Moving Averages (DMAs) after declining for the last four consecutive days.

That said, the 21-DMA and the 50-DMA confluence near 163.30-25 appears to be the immediate support for the GBP/JPY pair ahead of the 100-DMA support near 163.00.

If at all the quote declines below 163.00, the 50% Fibonacci retracement level of May-June upside, near 162.10, precedes a four-month-old support line, near 161.60, to challenge the quote’s further declines.

In a case where the GBP/JPY prices break the 161.60 support, the odds of witnessing a south-run towards the 61.8% Fibonacci retracement level near 160.50 can’t be ruled out.

Alternatively, the 164.00 threshold precedes the tops marked in July and September, respectively near 166.30 and 167.35, which could challenge GBP/JPY buyers.

Should the cross-currency pair roses past 167.35, the yearly top marked in June around 168.75 and the 170.00 round figure will be in the spotlight.

Overall, GBP/JPY remains on the bear’s radar despite the latest inaction.

GBP/JPY: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	163.22
Today Daily Change	-0.02
Today Daily Change %	-0.01%
Today daily open	163.24

Trends
Daily SMA20	163.33
Daily SMA50	163.27
Daily SMA100	163.06
Daily SMA200	160.05

Levels
Previous Daily High	164.62
Previous Daily Low	162.75
Previous Weekly High	167.22
Previous Weekly Low	162.75
Previous Monthly High	163.99
Previous Monthly Low	159.45
Daily Fibonacci 38.2%	163.46
Daily Fibonacci 61.8%	163.91
Daily Pivot Point S1	162.45
Daily Pivot Point S2	161.66
Daily Pivot Point S3	160.57
Daily Pivot Point R1	164.33
Daily Pivot Point R2	165.42
Daily Pivot Point R3	166.21

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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