GBP/JPY Technical Analysis: 61.8% Fibo. restricts pullback from 6-month high
- GBP/JPY steps back from late-May high amid bearish MACD.
- 200-day SMA follows 61.8% Fibonacci retracement as the key support.
- March and April month lows will be on bulls target during the successful run-up.
The GBP/JPY pair’s rise to the fresh high since May 21 fails to last long as the quote witnesses a pullback move to 140.78 by the press time of Asian session start on Tuesday.
However, 61.8% Fibonacci retracement of March-August downpour around 140.35 limits immediate declines ahead of highlighting 140.00 round-figure and monthly bottom surrounding 139.35.
During the quote’s further downside beneath 139.35, 200-day Simple Moving Average (SMA) around 138.50 will be decisive for the bears.
It’s worth mentioning that the bearish signal from 12-bar Moving Average Convergence and Divergence (MACD) makes sellers hopeful.
Alternatively, an upside clearance of 141.75 becomes necessary for the bulls to hold the reins and target May 10 high of 143.25. Though, lows marked during the months of March and April, near 143.75/80, could restrict the pair’s further advances.
Given the quote’s sustained rise past-143.80, 145.00 will be on the buyers’ watchlist.
GBP/JPY daily chart
Trend: Pullback 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.
