GBP/JPY Price Analysis: Seems vulnerable near two-month lows, below 38.2% Fibo.

GBP/JPY finally broke down of a near one-week-old trading range support near mid-135.00s.
The set-up favours bearish traders and supports prospects for an extension of the downtrend.
Attempted recovery might now confront stiff resistance and remain capped near the 135.60 area.

Haresh Menghani FXStreet

The post-BoE selling around the British pound, coupled with a strong pickup in demand for the safe-haven Japanese yen pushed the GBP/JPY cross to near two-month lows on Thursday.

Sustained weakness below the 135.50-40 area marked a fresh bearish breakthrough a near one-week-old trading range and the 38.2% Fibonacci level of the 124.07-142.72 positive move. This comes on the back of last week's break below a multi-month ascending trend-line support and might have already set the stage for an extension of the recent downward trajectory.

However, RSI (14) on the daily chart has moved on the verge of breaking below the 30 mark and suggests slightly oversold conditions, which held bearish traders from placing fresh bets. That said, the cross still seems vulnerable to weaken further below the 134.45 intermediate support and test the 134.00 mark before eventually dropping to 50% Fibo. level, around mid-133.00s.

On the flip side, any meaningful recovery back above the key 135.00 mark now seems to confront stiff resistance and fizzle out near the 135.60 support breakpoint (38.2% Fibo. level).

GBP/JPY daily chart

Technical levels to watch

GBP/JPY

Overview
Today last price	134.99
Today Daily Change	-1.09
Today Daily Change %	-0.80
Today daily open	136.08

Trends
Daily SMA20	139.02
Daily SMA50	137.86
Daily SMA100	135.69
Daily SMA200	137.24

Levels
Previous Daily High	136.47
Previous Daily Low	135.56
Previous Weekly High	141.05
Previous Weekly Low	135.58
Previous Monthly High	142.04
Previous Monthly Low	137.75
Daily Fibonacci 38.2%	136.12
Daily Fibonacci 61.8%	135.91
Daily Pivot Point S1	135.61
Daily Pivot Point S2	135.13
Daily Pivot Point S3	134.7
Daily Pivot Point R1	136.52
Daily Pivot Point R2	136.95
Daily Pivot Point R3	137.42

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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