GBP/JPY Price Analysis: Trying to defend 200-hour SMA/61.8% Fibo. confluence support

GBP/JPY comes under some heavy selling on the first day of a new trading week.
The technical set-up isn’t supportive of a firm direction and warrants some caution.

Haresh Menghani FXStreet

The GBP/JPY cross extended its sharp intraday pullback from levels just above mid-144.00s and dropped to fresh session lows in the last hour, albeit managed to find some support near 200-hour SMA.

The mentioned region coincides with the 61.8% Fibonacci level of the 142.32-144.96 move up, which should now act as a key pivotal point intraday traders and help determine the pair's short-term momentum.

Meanwhile, technical indicators on hourly/daily charts have been losing positive momentum/gaining negative traction and support prospects for additional downside amid the prevailing risk-off mood.

However, oscillators on the daily chart – though have been correcting from highs – have managed to hold in the bullish territory and warrant some caution before placing any aggressive bearish bets.

This coupled with last week's bullish break through a two-month-old descending trend-line might attract some dip-buying at lower levels and help limit further downside, at least for the time being.

Hence, it will be prudent to wait for some follow-through selling before confirming that the recent positive move might have run out of the steam and positioning for a further depreciating move.

GBP/JPY 1-hourly chart

GBP/JPY

Overview
Today last price	144.66
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	144.66

Trends
Daily SMA20	142.68
Daily SMA50	142.89
Daily SMA100	141.43
Daily SMA200	137.66

Levels
Previous Daily High	144.96
Previous Daily Low	143.73
Previous Weekly High	144.96
Previous Weekly Low	142.32
Previous Monthly High	144.61
Previous Monthly Low	140.83
Daily Fibonacci 38.2%	144.49
Daily Fibonacci 61.8%	144.2
Daily Pivot Point S1	143.94
Daily Pivot Point S2	143.21
Daily Pivot Point S3	142.7
Daily Pivot Point R1	145.17
Daily Pivot Point R2	145.69
Daily Pivot Point R3	146.41

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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