GBP/JPY Price Analysis: Upside ends abruptly, tests key short-term support
- GBP/JPY accelerates to the downside during the last hours, amid risk aversion.
- Price is testing the 150.50/60 area that continues to be a relevant technical level.
The GBP/JPY turned to the downside after hitting at 151.99, the highest level since April 7. It is trading at 150.60 after the sharp reversal, suggesting the upside is over for the moment.
The 150.50/60 area was a resistance during the previous weeks and now will act as support. Also, at the mentioned area the 21 simple moving average is seen (4-hour chart). A consolidation below 150.50 would point to further losses, with a test of 150.00 on the cards. Technical indicators are biased modestly to the downside in the four-hour chart.
A recovery back above 151.30 would alleviate the bearish pressure. For the pound to offset the negative bias, a firm break above 152.00 is needed.
GBP/JPY 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
