GBP/JPY Price Analysis: Off five-month-old support but stays on bear’s radar
- GBP/JPY keeps rebound from two-month low, consolidates weekly losses.
- Weekly resistance line, 200-DMA restricts recovery moves below six-week-long resistance line.
- Bearish MACD signals add to the downside bias, 148.50 in focus.
GBP/JPY stays firmer around 150.30 during the first positive day in three. In doing so, the cross-currency pair holds onto the bounce off an ascending support line from July to pare weekly losses around the lowest levels in two months.
Even so, a one-week-old resistance line joins bearish MACD signals to keep sellers hopeful until the quote crosses the 150.75 level.
Although the GBP/JPY manages to pierce the 150.75 hurdle, 200-DMA and a descending resistance from late October, respectively around 152.50 and 153.15, will be the tough nuts to crack for the bulls.
Alternatively, the 150.00 threshold will precede the aforementioned five-month-long support line, at 149.50 by the press time, to limit short-term declines of the pair.
In a case where the GBP/JPY prices drop past 149.50, September’s low near 148.95 may offer an intermediate halt during the fall to the 148.50-45 area comprising lows marked in July and March.
It’s worth mentioning that the pair’s declines below 148.50 will make it vulnerable to test early 2021 high near 142.50.
GBP/JPY: Daily chart
Trend: Bearish
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.
