GBP/JPY technical analysis: 128.10/25 limits immediate upside below 200-HMA

GBP/JPY remains on the back below the key resistances, near the multi-month low, amid no-deal Brexit risk.
Technical indicators signal pullback while resistance-confluence will limit the recovery.

Anil Panchal FXStreet

Despite GBP/JPY sellers catching a breath around September 2017 low, the pair remains beneath short-term key resistance-area, not to forget under the 200-HMA, as it trades near 127.14 during the early Asian session on Monday.

The British Pound (GBP) has recently been bearing the burden of the increase in odds favoring no-deal Brexit.

The region between 128.10 and 128.25 consists of multiple lows marked during last-week and a downward sloping trend-line stretched since July-end top.

Adding to the upside barrier is 200-hour moving average (HMA) near 129.77, a break of which can escalate the pair’s run-up towards 130.000 and then to July 30 low near 131.61.

On the downside, recent low surrounding 126.96 becomes the key support that holds the gate for the quote’s further south-run towards September 2017 low near 125.62.

It should also be noted that important technical indicators like 14-bar relative strength index (RSI) and 12-bar moving average convergence and divergence (MACD) signal sellers’ exhaustion.

GBP/JPY hourly chart

Trend: Bearish

1. R3 130.04
2. R2 129.4
3. R1 128.24
PP 127.6
1. S1 126.45
2. S2 125.81
3. S3 124.65

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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