GBP/JPY came under strong pressure after closing below the 143.75 key support level last week, with the price falling towards a three-month low of 141.19 on Monday. The sell-off, however, could be overstretched as both the RSI and the Stochastics are fluctuating near oversold levels, a signal justified by the current positive price movement.
A rally above 143.75 and more importantly above the January high of 144.82 could prove helpful for the bulls to reach resistance between 146.49 and 147.
Otherwise, should the market weaken below the 50% Fibonacci of 140.68 of the up leg from 132.48 to 148.85, support could next run towards the 61.8% Fibonacci of 138.73 and the 137.50 restrictive level. In this case, the medium-term outlook would turn from neutral to bearish.
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