GBP/JPY Price Analysis: Pound limited below trendline resistance at 131.85
- GBP/JPY remains biased lower capped below trendline resistance at 131.85.
- The pound remains bid with the yen favoured by global risk aversion.
The sterling remains trading on a bid tone against the Japanese yen, set for a three-day losing streak, unable to stretch above trendline resistance from April 30 highs, now at 131.85 area.
GBP/JPY’s upside attempt from 129.29 lows witnessed earlier this week found resistance at the 50-day SMA, near 132.40, and the pair has kept the bearish trend intact, with the pound weaker against the safe haven-yen as the grim UK macroeconomic data added concerns to the looming Brexit uncertainty.
The pair should break above the mentioned trendline, now around 131.85 and the 50-day SMA, at 132.30 area to ease negative pressure which might increase confidence for buyers, to reach May 11 highs at 133.20.
On the downside, immediate support lies at 130.65 (May 22 low) and below here, 129.45 (23,6% retracement of the Feb.-Mar. decline) and 127.45 (Mar. 23 lows).
GBP/JPY daily chart