- The GBP/JPY cross tumbled to six-month lows on Wednesday, with bears now eyeing a follow-through weakness below the key 135.00 psychological mark.
- Acceptance below the 136.00 round figure mark was seen as a key trigger for bearish traders and sets the stage for an extension of the ongoing bearish slide.
The British Pound continues to be weighed down by the dovish comments by the BoE Governor Mark Carney, which coupled with reviving safe-haven demand for the Japanese Yen kept exerting downward pressure for the third consecutive session on Wednesday.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and support prospects for a further near-term depreciating move, though oversold conditions on hourly charts warrant some caution before placing any aggressive bets.
However, a convincing breakthrough the mentioned handle will reinforce the bearish outlook and turn the cross vulnerable to witness a follow-through weakness further towards challenging the 134.00 round figure mark in the near-term.
On the upside, the 136.00 horizontal support breakpoint now becomes immediate strong resistance, which if cleared decisively might prompt some short-covering move, through any subsequent recovery is likely to remain capped near mid-136.00s.
GBP/JPY daily chart
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