GBP/JPY technical analysis: 22-month old support-line in the spotlight

RSI close to oversold conditions can trigger the GBP/JPY pair’s U-turn from key support-line.
Break of mid-January low can escalate the upside towards 23.6% Fibonacci retracement.

Anil Panchal FXStreet

Bears dominate GBP/JPY momentum as the quote seesaws near six-month lows to 135.07 during the early Asian session on Tuesday.

An upward sloping trend-line connecting September 2017 low to January 2019 bottom, at 134.14 now, becomes key for traders amid nearly oversold conditions of 14-bar relative strength index (RSI).

With this, pair’s U-turn to mid-January lows surrounding 137.36 can’t be denied. However, an upside break of which seems a tough move that holds the key to 23.6% Fibonacci retracement level of 2015 swing highs to 2016 swing lows around 140.45.

Meanwhile, a downside break of 134.14 can further strengthen bears towards targeting the current year low close to 131.80 with 133.50 likely being an intermediate halt.

GBP/JPY weekly chart

Trend: Pullback expected

1. R3 136.54
2. R2 136.19
3. R1 135.63
PP 135.29
1. S1 134.73
2. S2 134.38
3. S3 133.82

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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