GBP/JPY technical analysis: Flashing red, eyes key support of 50-hour MA


  • GBP/JPY has backed off from highs near 141.50 registered on Thursday. 
  • A deeper drop to key support at 139.32 looks likely due to the bearish divergence of a technical indicator. 

GBP/JPY is currently trading near 139.70, representing a 0.22% loss on the day, having hit a high of 141.50 on Thursday on Brexit optimism.

The ongoing pullback is likely to be extended further to the 50-hour moving average (MA) support, currently at 139.32, as the 4-hour chart is reporting a bearish divergence of the relative strength index (RSI). Further, the long upper wick attached to Thursday's candle and the overbought reading (above 70) on the RSI indicates buyer exhaustion.

It is worth noting that the 50-hour MA consistently reversed pullbacks throughout the recent 1,100 pip rally from 130.43 to 141.50. The short-term outlook, therefore, would turn bearish if the 50-hour MA support is breached.

A strong bounce from that key support may yield a re-test of Thursday's high of 141.50, although as of now, that looks unlikely.

4-hour chart

Hourly chart

Trend: Deeper pullback likely

Technical levels

GBP/JPY

Overview
Today last price 139.71
Today Daily Change -0.36
Today Daily Change % -0.26
Today daily open 140.07
 
Trends
Daily SMA20 134.08
Daily SMA50 132.05
Daily SMA100 133.57
Daily SMA200 138.74
 
Levels
Previous Daily High 141.51
Previous Daily Low 138.59
Previous Weekly High 137.9
Previous Weekly Low 130.42
Previous Monthly High 135.75
Previous Monthly Low 126.67
Daily Fibonacci 38.2% 140.4
Daily Fibonacci 61.8% 139.71
Daily Pivot Point S1 138.6
Daily Pivot Point S2 137.14
Daily Pivot Point S3 135.68
Daily Pivot Point R1 141.52
Daily Pivot Point R2 142.98
Daily Pivot Point R3 144.44

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures