GBP/JPY Price Analysis: Poised for further losses around mid-151.00s
- GBP/JPY prints five-day downtrend, extends 11-week-old support break.
- Bearish MACD favor further weakness but RSI probes the bears near the key supports.
- 152.30 guards immediate upside, 100-day SMA and four-month-old support line lures bears.
GBP/JPY stays pressured for the fifth consecutive day as bears attack early May’s lows, down 0.45% around 151.50, ahead of Monday’s London open.
Although the oversold RSI conditions seem to test the pair bears of late, sustained break of previous support from April and most bearish MACD signals since late March keep the pair sellers hopeful.
On the way down, a 100-day SMA level of 151.13 can offer immediate support to the quote ahead of an ascending support line from late February, around 150.70.
During the quote’s further weakness past 150.70, the 150.00 psychological magnet and April’s bottom surrounding 149.00 could test GBP/JPY bears.
Meanwhile, the corrective pullback may aim for 152.30-40 region comprising multiple tops marked since March before targeting the previous horizontal support around 153.45-50.
It’s worth noting that 154.85 and the 156.00 threshold become the key hurdles during the GBP/JPY upside beyond 153.50.
Overall, GBP/JPY is yet to announce its bearish journey but short-term declines can’t be ruled out.
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.
