Home GBP/JPY technical analysis: 200-day SMA in the spotlight
FXStreet News

GBP/JPY technical analysis: 200-day SMA in the spotlight

  • GBP/JPY fails to hold strength beyond 61.8% Fibonacci retracement.
  • A downside break of 200-day SMA can recall a 50% Fibonacci retracement level.
  • The late-may high will be on the bull’s radar.

Having slipped back beneath 61.8% Fibonacci retracement of March-August downpour, GBP/JPY traders await a downside break of 200-day SMA for confirmation of the latest weakness. The quote seesaws near 139.70 by the press time of Wednesday’s Asian session.

Should prices decline below 200-day Simple Moving Average (SMA) level of 138.74, 50% Fibonacci retracement level of 137.70 will become the sellers’ target.

However, early-July high and September month top, close to 136.30 and 135.65 respectively, will lure bears during pair’s further declines below 137.70.

Meanwhile, buyers will look for a successful break above the late-May high of 141.75 to target April month lows near 143.75.

It’s worth noting that 140.00 round-figure can act as an immediate upside barrier.

GBP/JPY daily chart

Trend: pullback expected

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.