GBP/JPY price analysis: Bears retain the reins, but need validation from 200 SMA

JPY/GBP remains under pressure around key support levels after snapping a three-week uptrend.

GBP/JPY price analysis: Bears retain the reins, but need validation from 200 SMA
  • Rising wedge confirmation and the declining RSI line keep sellers optimistic.

  • 100 SMA, monthly support level, restricts immediate downside. Bulls must cross 157.35 in order to retake control.

GBP/JPY is still at 156.20, 0.20% lower intraday during Monday's Asian session.

Cross-currency pair posted the fourth consecutive negative weekly close by Friday's North American session. It also confirmed a one-week-old rising wedge bearish pattern.

The downward sloping RSI lines, which are not oversold, also acts as a bearish catalyst.

The immediate downside of the quote is limited by convergence of the 100 SMA and an upward-sloping trendline from January 24, at 156.00

If the quote falls below 156.00, then the 200-SMA level at 155.80 or the swing low of 155.30 could be used as interim halts in the south-run to January's bottom at 152.90.

Recovery moves could, however, initially challenge the rising wedge's support level, which is around 156.50 at press time.

The 157.00 figure round and the upper line in the bearish formation will test GBP/JPY sellers afterward.

The pair's upside beyond 157.35 will not hesitate to refresh the 2022 peak at 158.00.

GBP/JPY Chart for Four Hours
More weakness is expected in the trend

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