GBPJPY Eases From Weekly Highs of 140.44 Level As Last-Minute Brexit Optimism Fades

GBPJPY Price Analysis – December 20

GBPJPY fell to a low of 139.31 and closed around 139.66 in the previous session. A dip below 140.31 pushed the pair to further losses as optimism about Brexit fades at the last minute. Against this backdrop, the risk tone weakens the previous upward momentum and could drop sharply in the next session.

Key Levels
Resistance Levels: 147.95, 144.95, 140.31
Support Levels: 138.38, 136.78, 134.40
GBPJPY Long term Trend: Ranging
Technical indicators on the daily chart have stopped gaining momentum and support the prospects for continuing sideways trading. Consequently, a subsequent move to swing lows around 136.78 remains in place and, on the other hand, another move to swing highs around 140.70 on the way to 141.00 looks very likely.

Meanwhile, any significant pullback could be seen as a buying opportunity around 139.00. Failure to protect said support will exacerbate a strong barrier near current levels and leave the GBPJPY cross vulnerable to an accelerated slide towards 138.38.
GBPYJPY Short term Trend: Ranging
As seen in the 4-hour timeframe, the GBPJPY bounced strongly last week but failed to break through the resistance level of 140.70. Initial sentiment remains neutral this week. On the other hand, a solid breach of 140.70 could initiate a rough bounce off 133.04 to retest the high of 141.71.

On the other hand, a breach of 136.78 could initially reverse the downtrend for the 134.40 support. However, bears are less likely to enter unless they witness a clear breach beneath the ascending trendline support and confluence around 137.90.

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