- GBP/JPY holds below short-term downtrend line
- Strong resistances near 50- and 200-day SMAs
- Stochastics ease lower
GBP/JPY is tumbling near the 189.00 round number, crossing beneath the medium-term ascending trend line and the 20-day simple moving average (SMA).
The pair is rapidly approaching the near five-month low of 187.05, and any declines below this level could lead to additional drops towards the 183.70 support level. Below that, the 180.00 psychological mark, achieved from the low in August 2024, may halt further bearish movements.
On the flip side, a break above the 191.30 level, which is near the 20-day SMA, and the uptrend line could send investors until the 193.00 round number where also the 50-day SMA lies. Even higher, a break above the 194.75 resistance and more importantly above the 200-day SMA, which stands at 195.00 could switch the outlook to a more positive one.
From a technical standpoint, the stochastic is heading south toward the oversold territory, while the MACD is boosting its negative momentum below the zero level.
To conclude, GBP/JPY has been in a bearish tendency since it peaked at 199.00 in the short-term view and any lows below 187.00 could endorse the current outlook.