The GBPJPY pair has been in a downtrend since reaching a high of 183.95 on October 6, 2023¹. The pair has formed lower highs and lower lows, indicating a strong bearish momentum. The pair is currently trading below the 50-day and 200-day moving averages, which act as dynamic resistance levels. The pair is also below the Ichimoku cloud, which confirms the bearish bias².
The pair has recently broken below a rising wedge pattern on the 4-hour chart, which is a bearish reversal signal. The pair has also broken below the 181.50 support level, which was the previous low on October 13, 2023³. The pair is now facing the next support level at 180.00, which is a psychological round number and also coincides with the 61.8% Fibonacci retracement level of the last bullish swing from 177.10 to 183.95⁴.
The RSI indicator is below the 50 level, indicating bearish pressure. The MACD indicator is below the zero line and has crossed below the signal line, generating a bearish crossover signal. The stochastic indicator is in the oversold territory, suggesting that the pair may be due for a minor correction or consolidation before resuming its downtrend⁴.
Therefore, based on the technical analysis, I expect the GBPJPY pair to continue its bearish trend and target the 180.00 support level in the near term. A break below this level could open the door for further downside towards the 178.00 and 176.00 levels. However, if the pair rebounds above the 181.50 level, it could invalidate the bearish scenario and trigger a short-term recovery towards the 182.50 and 183.00 levels
(1) 1.00 GBP is equal to 181.36 JPY. bing.com/search?q=gbpjpy+c...
(2) GBPJPY Chart — Pound to Yen Rate — TradingView. www.tradingview.com/symbols/GBPJPY/.
(3) GBP JPY Chart - Investing.com. www.investing.com/cu...ncies/gbp-jpy-chart.
(4) GBPJPY Chart - Live Forex Rate - Live Charts. www.livecharts.co.uk...exCharts/gbpjpy.php.
(5) British Pound to Japanese Yen Exchange Rate Chart | Xe. www.xe.com/currencycharts/?from=GBP&a...