GBP/JPY Price Analysis: Remains vulnerable near 5-month lows
- GBP/JPY remains under some selling pressure for the second straight session on Friday.
- The downfall confirms a near-term bearish break below 200-DMA/61.8% Fibo. support.
The GBP/JPY cross witnessed some selling for the second consecutive session and dropped to nearly five-month lows, below mid-136.00s on Friday amid strong demand for the safe-haven Japanese yen.
Friday's downfall finally confirmed a near-term bearish break through the weekly trading range and below the very important 200-day SMA, setting the stage for an extension of the depreciating move.
This coupled with the fact that the cross now seems to have found acceptance below the 61.8% Fibonacci level of the 130.43-147.93 positive move further adds credence to the near-term negative outlook.
Some follow-through selling will reaffirm the bearish bias and accelerate the slide towards the 136.00 round-figure mark. The cross is likely to extend the momentum further towards the 135.30-25 support area.
However, slightly oversold conditions on the daily chart might hold investors from placing any aggressive bearish bets and help limit deeper losses amid the prevalent bid tone around the GBP/USD major.
GBP/JPY daily chart
Technical levels to watch