GBPJPY Dips Beneath 135.00 Level, Extending Prior Days Pullback

GBPJPY Price Analysis – June 17

GBPJPY posts low losses of 0.17 percent while falling to a level of 134.72 on Wednesday at the European open. By so doing, the pair depicts the string of losses of two days while extending the pullback from 136.23 level of the prior day. While the UK is providing positive results from its COVID-19 vaccine, the threats of the 2.0 pandemic surge, originating from China, the US, and Japan, is intensifying downside pressure on the pair.

Key Levels
Resistance Levels: 147.95, 139.74, 136.23
Support Levels: 133.45, 129.29, 122.75
GBPJPY Long term Trend: Ranging
Repeated failure of the pair’s second day to cross the moving average 13 upwards and break the horizontal resistance line at level 136.23 depicts the pair’s weakness. As a consequence, sellers may steadily return to support around the level of 133.45.

The moving average of 13 is presently used as an intraday resistance zone and the price may break the level of 135.00 where it had initially halted. On the daily chart, the RSI indicator looks bearish while it’s under the 50 zone and has a bearish swing. The moving average 5’s red line crossed down with more space toward the ascending trendline support.
GBPJPY Short term Trend: Ranging
GBPJPY’s recovery slowly declined after failing to sustain above 4 hours moving average 13. Its intraday bias is initially made neutral. On the positive side, a breach of 136.23 minor level of resistance may accelerate the rebound from 133.45 level to 139.74 high level for a retest.

On the drawback, a continuous breach of 4-hour moving average 5 (now at level 134.60) may imply that the entire recovery from level 127.54 is finished. To confirm this bearish case, the decline from level 139.74 should then target support level 129.29.

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