- GBP/JPY fades an intraday bullish spike beyond the 143.00 mark.
- The near-term set-up seems tilted in favour of bearish traders.
The GBP/JPY cross failed to capitalize on the early positive move and has now drifted into the negative territory, eroding a part of the overnight recovery gains.
The pair’s inability to find acceptance above the 143.00 handle and a subsequent downfall point to the emergence of fresh selling pressure/further downside.
This coupled with the fact that oscillators on the daily chart have struggled to gain any meaningful positive traction further reinforce the bearish outlook.
Moreover, oscillators on hourly charts have again started drifting into the negative territory, supporting prospects for the resumption of the prior downward trajectory.
Some follow-through weakness, possibly below the 142.00 handle towards testing 50-day SMA, now looks a distinct possibility amid fears of a no-deal Brexit.
Any further slide might continue to attract some dip-buying near the 141.00-140.80 region – a previous trading range resistance breakpoint now turned support.
Failure to defend the mentioned support area, coinciding with over one-month lows set in the previous session, might now be seen as a key trigger for bearish traders.
The cross then might turn vulnerable to accelerate the slide towards the key 140.00 psychological mark before eventually dropping to the 139.35-30 horizontal support.
On the flip side, the 142.90-143.00 region now seems to act as an immediate resistance, which if cleared decisively might now negate any near-term bearish outlook.
GBP/JPY daily chart