GBP/JPY Price Analysis: Weekly support probes retreat from one-month high above 162.00
- GBP/JPY remains pressured around daily lows after reversing from monthly high.
- RSI retreat also keep sellers hopeful but 200-SMA adds to the downside filters.
- Recovery remains elusive below 61.8% Fibonacci retracement level.
GBP/JPY extends pullback from a one-month high as traders jostle with the weekly support line during Thursday’s Asian session. That said, the quote stays depressed near 162.30 by the press time.
In doing so, the cross-currency pair traces the pullback in the RSI (14), as well as failures to cross the 61.8% Fibonacci retracement (Fibo.) of April 20 to May 12 downside, near 163.55 by the press time.
Given the pullback in RSI and failures to cross the key Fibo. level, the latest GBP/JPY weakness is likely to extend towards an upward sloping trend line from May 12, close to 159.85.
However, the one-week-old rising trend line support and the 200-SMA, respectively around 162.00 and 161.60, could challenge the pair bears.
Alternatively, recovery moves may initially aim for the 61.8% Fibonacci retracement level of 163.55 before highlighting the late April swing high near 164.30, as well as March’s high of 164.65.
In a case where GBP/JPY remains firmer past 164.65, the odds of its run-up towards the yearly peak of 168.43 can’t be ruled out.
GBP/JPY: Four-hour chart
Trend: Further weakness expected
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.
