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GBP/JPY bearish correction testing support zone 153.75

FXstreet.com (London) - GBP/JPY faltered towards the broken support zone at 154.78 overnight, with losses paring the gains made in the NA session ad now resumes a bearish correction testing support zone 153.75.

The quote moved back down to below 153.00 the figure to find support in 152.70/95 areas, losing out to more risk adverse trading conditions overnight with the Nikkei 225 index finishing modestly higher. The pair have picked up significantly at the end of the Asian session and in the European opening hours. At the time of writing, it is trading more than 100 pips up recording a high of 154.34. The Yen had also been handed over in European hours much higher.

While the volatility plays out, the indicators on the charts offer strongly bearish signals on the hourly chart but remain bullish longer term. The breakout below 155.00 is still looking in tact for the time being until the pair can manage a close back into its previous territory. Fundamentals in the pound are unlikely to offer the support in the pair required for a decisive continuation of the previous bull trend for the time being. The pair are nonetheless supported at 153.75/84 pivot point before 152.80 with technical MA’s all signalling bullish readings longer term, with hourly MA’s very much in the red.

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