GBP/JPY Price Analysis: Struggles to find acceptance above 136.00 mark, turns flat

The GBP/JPY cross managed to find decent support near the key 135.00 psychological mark and rallied over 120 pips from four-day lows set earlier this Friday. The mentioned level represents 200-hour SMA and should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts have again started gaining positive traction and support prospects for additional intraday gains. However, oscillators on the daily chart – through have been recovering from the negative territory – are yet to confirm the bullish bias and warrant some caution.

Hence, any subsequent positive move is more likely to confront stiff resistance near the very important 200-day SMA, around the 136.70-80 region. The said hurdle coincides with the 38.2% Fibonacci level of the 142.72-133.05 recent pullback, which if cleared will be seen as a fresh trigger for bullish traders.

The GBP/JPY cross might then aim to test the 137.55-60 intermediate resistance before eventually climbing further towards the 50% Fibo. level, around the 138.00 round-figure mark.

On the flip side, the 23.6% Fibo. level, around the 135.35 region, now seems to protect the immediate downside. Some follow-through selling might accelerate the slide back towards the 135.00 mark (200-hour SMA), below which the GBP/JPY cross seems all set to resume its recent bearish trajectory.

GBP/JPY 1-hourly chart

Technical levels to watch