GBPJPY Further Downside Attempts 130.00 Level With the Yen Favored by Global Risk Aversion

GBPJPY Price Analysis – May 24

The sterling stays selling against the Japanese yen on a bid tone, poised for a three-day negative note, unable to bounce from the ascending trendline, now at 130.86 level. And the pair kept the downside bias steady, with the pound softer against the safe haven-yen as the bleak UK macroeconomic data added anxiety to the potential uncertainty of Brexit.

Key Levels
Resistance Levels: 147.95, 138.68, 132.58
Support Levels: 129.29, 126.54, 123.99

GBPJPY Long term Trend: Ranging
The pair should break beneath the ascending trendline support, as the price is now around 130.85 level and the horizontal support line, to ease pressure at 130.60 area, which could increase buyers’ confidence, to reach May 11 highs at 133.67 level.

On the contrary, the local support emerges at level 129.29 (low May 18) and well below here, level 128.58 (which is 23.6 percent fall from Feb.-Mar.) and level 123.99 level (lows from Mar. 23).

GBPJPY Short term Trend: Ranging
As seen from the 4-hour context, GBPJPY has deteriorated since April 20, slipping back underneath the 5 and 13 moving averages several times after near-term reversals reported at these intervals and the psychological level of 132.58, being the down leg’s 38.2 percent mark from 144.95 to 123.99 levels.

The moving averages are displaying bearish crossovers as per the momentum metrics while the RSI is grinding lower in the negative range. The price may hit the level at 123.99, which is a low of about 3 years, in the event of a stronger downward trend.

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