GBP/JPY Price Analysis: Key SMAs probe six-day downtrend near monthly low
- GBP/JPY remains on the back foot for the sixth consecutive day, fades Monday’s corrective pullback.
- Convergence of 50-DMA, 100-DMA challenges immediate declines ahead of 200-DMA.
- Bearish MACD signals keep sellers hopeful, two-week-old descending trend line becomes crucial resistance.
GBP/JPY takes offers around 153.30, down 0.27% intraday to portray six-day declines during early Tuesday.
In doing so, the cross-currency pair jostles with the 100-DMA and 50-DMA while reversing the late Monday’s rebound from the one-month low.
Given the bearish MACD and failures to keep the bounce off 152.90, GBP/JPY prices are likely to remain pressured. However, a daily closing below the 200-DMA level of 153.00 becomes necessary for the pair sellers to remain in the driver’s seat.
Following that, the early November 2021 low near 152.40 and 23.6% Fibonacci retracement (Fibo.) of November-December downside, near 151.15, will be in focus.
Alternatively, recovery moves may initially aim for the 61.8% Fibo. level of 154.70.
However, GBP/JPY bulls remain unconvinced til the quote stays below a downward sloping resistance line from January 12, near 155.30.
Overall, GBP/JPY sellers keep the reins but further downside becomes doubtful.
GBP/JPY: Daily chart
Trend: Recovery moves expected