GBP/JPY Price Analysis: Rebounds swiftly from multi-day lows, remains vulnerable

GBP/JPY extended the previous day’s rejection slide from the 137.00 round-figure.
A convincing break below the 135.80-75 confluence support favours bearish traders.
Only a sustained move beyond the 136.00 mark will negate the negative outlook.

Haresh Menghani FXStreet

The GBP/JPY cross witnessed some heavy selling on the last trading day of the week and extended the previous day's rejection slide from the 137.00 mark, or three-week tops. The mentioned level represented the top end of a 1-1/2-week-old ascending trend-channel.

A subsequent fall to multi-day lows, around the key 135.00 psychological mark, confirmed a near-term bearish break through confluence support – comprising of the trend-channel support and 100-hour SMA. This, in turn, might have already set the stage for additional weakness.

Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again drifted back into the negative territory, adding credence to the bearish outlook. Hence, a slide back towards weekly lows, around the 134.35 region, now looks a distinct possibility.

On the flip side, the confluence support breakpoint, around the 135.75-80 region, now seems to act as immediate strong resistance. Some follow-through strength back above the 136.00 mark might negate the bearish bias and push the cross back towards reclaiming the 137.00 mark.

GBP/JPY 1-hourly chart

Technical levels to watch

GBP/JPY

Overview
Today last price	135.35
Today Daily Change	-0.71
Today Daily Change %	-0.52
Today daily open	136.06

Trends
Daily SMA20	136.09
Daily SMA50	137.82
Daily SMA100	135.99
Daily SMA200	136.79

Levels
Previous Daily High	137.01
Previous Daily Low	135.36
Previous Weekly High	135.34
Previous Weekly Low	133.05
Previous Monthly High	142.72
Previous Monthly Low	133.05
Daily Fibonacci 38.2%	135.99
Daily Fibonacci 61.8%	136.38
Daily Pivot Point S1	135.28
Daily Pivot Point S2	134.49
Daily Pivot Point S3	133.62
Daily Pivot Point R1	136.93
Daily Pivot Point R2	137.8
Daily Pivot Point R3	138.58

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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