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  • GBP/JPY corrects further to 149.88, the lowest since March 25.
  • Recovery back above 151.15 would alleviate the bearish pressure.

The GBP/JPY extended the drop from multi-year highs above 153.50 and fell on Thursday to 149.88, the lowest in two weeks. The four-hour chart points to the downside, particularly while it holds under 150.60 (uptrend line).

Despite some oversold readings in technical indicators, the bearish momentum remains at elevated levels. The break of an uptrend line, if confirmed, would leave the GBP/JPY vulnerable to more losses. Under 150.00, the next strong support is seen at 149.45, followed by 149.05. The break of the uptrend line suggests that GBP/JPY has peaked.

A recovery above 151.15 would ease the negative momentum for the pound. A rise above 152.00 is needed to negate the current bearish bias.

GBP/JPY 4-hour chart