GBP/JPY Price Analysis: Teases weekly support during latest pullback below 140.00

content provided with permission by FXStreet

  • GBP/JPY eases from two-week top amid bearish MACD.
  • Confluence of 100-HMA, 50% of Fibonacci retracement lures sellers.
  • Fortnight-old resistance line limits immediate upside before 12-week-long falling trend line.

GBP/JPY tests a three-day-long support line while flashing 139.62 as a quote during the early Wednesday. The pair recently took a U-turn from 139.83, the highest level in a fortnight amid bearish MACD signals.

Hence, sellers are targeting a confluence of 100-HMA and 50% Fibonacci retracement of November 11-19 downside, near 138.40/35, while trying to break the 139.55 nearby trend line support.

During the fall, the November 16 high around 138.90 can act as a buffer whereas the monthly bottom close to 137.20 can please the GBP/JPY bears afterward.

Alternatively, an upside clearance of the adjacent resistance line, at 139.82 now, will have to cross another falling trend line, from September 01, currently around 139.85, before eyeing the 140.00 threshold.

If at all the bulls manage to cross the 140.00 psychological magnet, the monthly high near 140.30 and the early-September low close to 140.50 may test the uptrend towards the yearly peak of 142.71.

GBP/JPY hourly chart

Trend: Pullback expected