GBP/JPY Price Analysis: Sellers battle 100-day SMA to justify bearish hammer on D1

GBP/JPY struggles to extend pullback from 136.16 despite bearish candlestick formation on the daily (D1) chart.
Oversold RSI, strong SMA support probe the bears below 200-day SMA.
August month’s low adds to the upside barriers.

Anil Panchal FXStreet

GBP/JPY stays mildly offered around 135.78 ahead of Friday’s London open. In doing so, the pair keeps the sellers hopeful based on a price-negative candlestick pattern as well as sustained trading below 200-day SMA. However, oversold RSI and 100-day SMA questions the quote’s immediate downside.

Other than the 100-day SMA, currently around 135.70, multiple lows marked during the mid-July and June 23 high, near 134.00, also question further selling of GBP/JPY.

If the Pound cross flashes a daily closing below 134.00, odds of its slump to June month’s bottom surrounding 131.75 can’t be ruled out.

Meanwhile, the 61.8% Fibonacci retracement level of June-September upside, near 135.95 offers immediate resistance to the pair ahead of the previous day’s top near 136.25.

On the D1 close above 136.25, GBP/JPY defies the bearish candlestick formation, which in turn enables it to target the 137.15/25 resistance confluence including 200-day SMA and 50% Fibonacci retracement.

Though, bulls will remain cautious unless breaking August month’s trough close to 137.75.

GBP/JPY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	135.78
Today Daily Change	-0.11
Today Daily Change %	-0.08%
Today daily open	135.89

Trends
Daily SMA20	138.82
Daily SMA50	137.88
Daily SMA100	135.7
Daily SMA200	137.2

Levels
Previous Daily High	136.22
Previous Daily Low	134.58
Previous Weekly High	141.05
Previous Weekly Low	135.58
Previous Monthly High	142.04
Previous Monthly Low	137.75
Daily Fibonacci 38.2%	135.21
Daily Fibonacci 61.8%	135.59
Daily Pivot Point S1	134.91
Daily Pivot Point S2	133.92
Daily Pivot Point S3	133.26
Daily Pivot Point R1	136.55
Daily Pivot Point R2	137.21
Daily Pivot Point R3	138.19

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.

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