GBPJPY caved in to selling pressure that held once again around the tough 140.30 ceiling, falling back to test the short-term ascending trendline within the 137.00 zone.
Meanwhile, the RSI has already broken its own upward-sloping trendline and is set to violate its 50 neutral mark on the downside too as the Stochastics sail southwards and the MACD keeps decelerating below its red signal line.
The above indicators signal that bearish forces may remain in play in the short run, though a close below the trendline and the 50% Fibonacci retracement of the 142.69 – 133.00 downleg at 137.86 is required to strengthen negative momentum . If that is the case, the price could revisit the 38.2% Fibonacci of 136.72 before gearing down to the 200-day simple moving average (SMA) and the 23.6% Fibonacci of 135.30. Another step lower would scrub the ongoing upward pattern, potentially pressing the pair to 133.00.
Failure to breach the supportive trendline could see the price re-challenging the 140.30 key resistance. A close beyond that could immediately bring the broken March ascending trendline immediately into view around 141.94. Should the latter give way, a steeper rally may develop towards 144.50.
In brief, GBPJPY is expected to attract more selling interest below the trendline and the 137.86 level. Otherwise, a rebound to 140.30 could be an alternative scenario.
