- GBP/JPY is defending key Fibonacci retracement support of 133.61 in Asia.
- The support will likely be breached in Europe as the hourly chart is reporting a bearish crossover.
GBP/JPY is currently trading at 133.76, representing 0.10% gains on the day. The JPY cross bounced up from 133.61 (23.6% Fibonacci retracement of 126.67/135.75) five hours ago to hit a high of 133.89 an hour ago.
The session lows could be refreshed with a drop below 133.61, as the hourly chart is reporting a death cross or bearish cross – the 50-hour moving average (MA) has crossed below the 200-hour MA.
Further, the daily chart is reporting a bearish candlestick arrangement – the pair created an outside bar candlestick on Monday and posted a bearish follow-through on Tuesday.
The MACD histogram is also producing lower highs, indicating a weakening of bullish momentum.
The bearish case would weaken if the pair bounces up strongly from key Fibonacci support of 133.61 and closes above 134.00.
Hourly chart
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Trend: Bearish
Technical levels
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