GBP/JPY Price Analysis: Breaks 162.50 support confluence to renew 13-day low
|- GBP/JPY stays offered at two-week low, extends the previous day’s losses.
- Clear break of 100-DMA, ascending trend line from May joins downbeat oscillators to favor sellers.
- Bulls need a successful run-up beyond 166.35 to retake control.
GBP/JPY stands on slippery grounds as bears smash the 162.50 support confluence heading into Friday’s European session. With this, the cross-currency pair also renews the two-week low while extending the previous day’s losses.
In addition to the break of the 100-DMA and an 11-week-old ascending trend line, the bearish MACD signals and downbeat RSI (14) also keep GBP/JPY sellers hopeful.
That said, an upward sloping trend line from early March, near 161.20 lures the bears before the 50% Fibonacci retracement of March-June upside, near 159.85.
However, the 200-DMA level of 158.34 could challenge the GBP/JPY sellers afterward.
Alternatively, recovery remains elusive below 162.50, a clear upside break of which could direct the GBP/JPY bulls towards the weekly resistance area near 166.30-35.
It should be noted that the highs marked in June, around 167.85 at the latest, could act as a buffer during the pair’s run-up towards the yearly peak of 168.73.
Overall, GBP/JPY flashed signals of further downside but there prevails a little room to the south.
GBP/JPY: Daily chart
Trend: Further weakness expected
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.