GBP/JPY Technical Analysis: Set-up remains in favor of bearish traders ahead of UK macro data/Brexit vote
• Despite the recent Brexit drama, the cross has been finding some support ahead of the 144.00 handle and has also managed to defend monthly lows.
• However, given the recent break below 2-1/2-month-old ascending trend-line support, the technical set-up seems to have shifted in favor of bearish traders.
• The overnight slide below 50-day SMA for the first time since late-Jan. points to increasing selling bias and adds credence to the near-term negative outlook.
• Oscillators on the daily chart have just started gaining negative momentum and hence, a sustained breakthrough the 143.75-70 region might prompt some additional selling.
• Below the mentioned support, the cross is likely to turn vulnerable to accelerate the slide further towards 143.30 intermediate support en-route the 143.00 handle.
GBP/JPY daily chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
