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.
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
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.
