- GBP/JPY fades rebound from two-month low, sidelined of late.
- 200-DMA, previous support line from July guard immediate upside.
- Six-month-old horizontal area becomes a tough nut to crack for bears.
- Bank of England Preview: Action to revolve around tapering prospects
GBP/JPY eases to 149.53, following a bounce off a two-month low, during Thursday’s Asian session. In doing so, the cross-currency pair keeps the early week's breakdown of the 200-DMA and an ascending trend line from July.
Given the bearish MACD and failures to cross the previous key supports during Wednesday’s corrective pullback, the pair sellers are likely to keep controls unless the Bank of England (BOE) surprises the markets.
That said, the latest low of 148.95, also the lowest in two months, lures intraday sellers but any further weakness will be questioned by an area stretched from March, near 148.55-45.
It’s worth noting that August month’s bottom near 149.20 offers immediate support while the December 2019 peak of 147.95 can lure GBP/JPY bears past 148.45.
Meanwhile, 200-DMA and the support-turned-resistance near can challenge the pair buyers below 149.90. To confirm the upside, traders may wait for a clear break of the 150.00 threshold.
Following that, the mid-September low near 150.80 and the monthly peak of 152.85 will be important levels to watch.
GBP/JPY: Daily chart
Trend: Further weakness expected
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