GBP/JPY turns below 145.00 level; struggles in a narrow range.
GBP/JPY is hovering below the crucial 23.6% Fibonacci retracement level of the up leg from 132.50 to 148.85, around 145.00 and the bearish crossover within the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. The technical indicators seem to be flattening in the negative zone, with the RSI pausing upside move slightly above its 30 oversold level and the MACD ceasing negative momentum below trigger and zero lines. Also, the price is trading well below the Ichimoku cloud and particularly below the red-Tenkan sen line, suggesting more losses ahead.
The more southward movement could meet the 144-10-143.70 support area, taken from the latest lows. A failure to hold above this zone could open the way towards the 143.25 level which if broken could trigger a more aggressive sell-off towards the 38.2% Fibonacci of 142.60.
On the other hand, an improvement has the potential to retest the 23.6% Fibonacci mark of145.00, while slightly above this level, the SMAs are standing near 145.35. Further up, the 146.50 resistance, which overlaps with the upper boundary of the Ichimoku cloud could halt upside movements as well.
Looking over the market’s last five-week performance, the pair has been neutral within the 148.40 resistance and the 143.70 support levels, while in the bigger picture, GBP/JPY remains bullish.
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