- GBP/JPY bounces off multi-day low while being under 21-DMA and 23.6% Fibonacci retracement.
- 200-DMA offers key support ahead of September month lows.
GBP/JPY takes the bids to 142.35 amid Friday’s Asian trading session. Even so, the pair’s latest recovery is likely to be confined by 21-Day Simple Moving Average (DMA) and 23.6% Fibonacci retracement level of August-December upside. Also increasing the odds of a downside are bearish signals from the 12-bar Moving Average Convergence and Divergence (MACD) indicator.
In doing so, the pair’s pullback to 141.360/50 area including highs marked in October and early November seems to be imminent while 38.2% Fibonacci retracement level of 139.75 and November month low around 139.40 can entertain bears afterward.
It’s worth mentioning that the 200-DMA level of 138.11 could restrict the pair’s declines past-139.40.
Meanwhile, pair’s sustained run-up beyond 21-DMA and 23.6% Fibonacci retracement, around 142.50 and 142.90 respectively, can propel it to 144.00 and Monday’s low of 145.75.
Furthermore, the Bulls’ additional dominance past-145.75 might not refrain from challenging the monthly high surrounding 148.00
GBP/JPY daily chart
Trend: Bearish
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