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  • GBP/JPY traders near the three-day low.
  • A downside break of 21-day SMA holds the key to further declines towards recent range lows, 200-day SMA.
  • Late-May high can challenge buyers during an upside.

GBP/JPY traders look for direction as the pair seesaws between 21-day SMA and 61.8% Fibonacci retracement while taking rounds to 140.30 during the Asian session on Wednesday.

While recent lows near 139.40/35 can offer immediate support to the pair during the downside break of 21-day Simple Moving Average (SMA) level of 140.07, 200-day SMA around 138.50 will be the key to watch afterward.

If prices slip below 138.50 on a daily closing basis, sellers targeting 50% Fibonacci retracement of March-August downpour, at 137.76, will sneak in.

Alternatively, a daily closing beyond 61.8% Fibonacci retracement level of 140.40 can again push buyers towards late-May high nearing 141.75. Though, pair’s further advances will target 143.80/75 area including multiple lows marked in March and April month.

GBP/JPY daily chart

Trend: Sideways