• The GBP/JPY cross struggled to capitalize on its early uptick to levels beyond mid-139.00s and has now dropped back within the striking distance of over four-month lows.
• Failure to find acceptance above 100-hour SMA clearly suggest that the near-term bearish pressure might still be far from being over and support prospects for further downside.
Technical indicators on hourly charts have again started gaining negative momentum and add credence to the bearish outlook, albeit oversold conditions on the daily chart warrant some caution before placing any aggressive bets.
Hence, it would be prudent to wait for a sustained weakness below the 138.55-50 horizontal support, below which the cross is likely to turn vulnerable to break below the 138.00 handle and aim towards testing its next support near the 137.40-35 region.
GBP/JPY 1-hourly chart