GBP/JPY Price Analysis: Bears keep reins but need validation from 200-SMA
- GBP/JPY stays pressured around the key supports after snapping three-week uptrend.
- Descending RSI line, rising wedge confirmation keep sellers hopeful.
- 100-SMA, monthly support line restricts immediate downside, bulls need to cross 157.35 to retake controls.
GBP/JPY remains depressed around 156.20, down 0.20% intraday, during Monday’s Asian session.
The cross-currency pair printed the first negative weekly closing in four weeks by the end of Friday’s North American session while confirming a one-week-old rising wedge bearish chart pattern.
Also acting as a bearish catalyst is the downward sloping RSI line, not oversold.
However, a convergence of the 100-SMA and an upward sloping trend line from January 24, near 156.00 restricts the quote’s immediate downside.
Should the quote drop below 156.00, the 200-SMA level of 155.80 and the recent swing low around 155.30 may act as intermediate halts during the south-run towards January’s bottom of 152.90.
Meanwhile, recovery moves may initially challenge the stated rising wedge’s support line, around 156.50 by the press time.
However, the 157.00 round figure and the upper line of the stated bearish formation, close to 157.35, will test GBP/JPY buyers afterward.
That said, the pair’s upside past 157.35 won’t hesitate to refresh the 2022 peak, currently around 158.00.
GBP/JPY: Four-hour chart
Trend: Further weakness expected