GBPJPY Downside Bias Stays Beneath 139.00 Level As Investors Await Brexit Negotiations

GBPJPY Price Analysis – August 23

The GBPJPY cross stayed subdued over the previous session and was last seen floating close to weekly lows, around the region of 138.43. A mix of factors supported the steady decrease, as investors await news on the current round of Brexit negotiations.

Key Levels
Resistance Levels: 147.95, 144.95, 141.24
Support Levels: 137.84, 135.76, 134.12
GBPJPY Long term Analysis: Ranging
Several technical selling underneath the round-figure level of 139.00 may further contribute to the downfall. A simultaneous drop beneath 138.25 level (weekly lows) may set the tone for a more medium-term weakening shift, probably to the next significant support near the 137.84 horizontal support zone beneath the 138.00 level.

So long the resistance level 147.95 stays, there is a potential downside breakout in support. Firm breach of 147.95 level, after all, would increase the risk of bullish long-term reversal. Validation of the emphasis may then be turned to the resistance level 156.59.
GBPJPY Short term Trend: Ranging
Last week GBPJPY remains beneath 140.20 level in consolidation and the trend is unaltered. First this week the initial bias stays neutral. Another rally is slightly in favor as long as it holds a support level of 137.84. The 140.20 level upside breach may reach a range of 123.99 to 135.76 levels from 129.29 to 141.24 levels at 100 percent.

Consequently, a breach of 137.84 level would suggest short-term topping, in 4 hour RSI on a bearish divergence. The intraday bias is switched back to the downside to retreat, first to the ascending trendline support (now at level 136.00).

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