GBP/JPY technical analysis: Bounces off lows, still in the red below 134.00 handle

On offers for the second consecutive session amid reviving safe-haven demand.
Technical set-up support prospects for the emergence of dip-buying at lower levels.

Haresh Menghani FXStreet

The GBP/JPY cross extended previous session's corrective slide from over two-month tops and remained under some selling pressure for the second consecutive session on Monday.

A sustained break below 200-hour SMA was seen as a key trigger for bearish traders amid reviving safe-haven demand and a follow-through weakness below the 134.00 round-figure mark.

Despite the pullback, the cross showed some resilience below 23.6% Fibo. level of the 126.67-135.75 move up, near the 133.35 support area, which should act as a pivotal point for short-term traders.

Meanwhile, technical indicators on the 1-hourly chart are already flashing oversold conditions and thus, warrant some caution for aggressive bearish traders amid receding fears of a no-deal Brexit.

Moreover, oscillators on the daily chart have managed to hold in the bullish territory, though have been losing positive momentum, and support prospects for the emergence of dip-buying interest.

Failure to defend the mentioned support might prompt some aggressive selling and accelerate the slide further towards the 133.00 handle en-route 38.2% Fibo. level support near the 32.30-25 region.

On the upside, the 134.00 round-figure mark now seems to act as immediate support, above which the cross is likely to make a fresh attempt towards conquering the key 135.00 psychological mark.

GBP/JPY 1-hourly chart

GBP/JPY

Overview
Today last price	133.77
Today Daily Change	-0.41
Today Daily Change %	-0.31
Today daily open	134.18

Trends
Daily SMA20	131.95
Daily SMA50	131.5
Daily SMA100	134.84
Daily SMA200	139.27

Levels
Previous Daily High	135.75
Previous Daily Low	134.06
Previous Weekly High	135.75
Previous Weekly Low	133.88
Previous Monthly High	132.56
Previous Monthly Low	126.54
Daily Fibonacci 38.2%	134.71
Daily Fibonacci 61.8%	135.1
Daily Pivot Point S1	133.58
Daily Pivot Point S2	132.97
Daily Pivot Point S3	131.89
Daily Pivot Point R1	135.27
Daily Pivot Point R2	136.35
Daily Pivot Point R3	136.96

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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