GBPJPY is heading slightly higher after the drop to the 131.87 support level. However, the decline in the simple moving averages (SMAs) and the Ichimoku indicators suggest the continuation of the descending movement in the short-term timeframe. Moreover, the MACD oscillator is heading south in the negative zone, though, the RSI is sloping slightly above near the 30 level.
Should the market extend losses, support could be met at the 131.87 barrier ahead of the 38.2% Fibonacci retracement level of the upward wave from 124.00 to 135.70 at 131.24. A significant leg below this area could send prices towards the 50.0% Fibo of 129.84 before the market retests 129.60.
On the flip side, if the pair bounces up, immediate resistance could be met at the 23.6% Fibonacci of 132.97 ahead of the 20-period SMA currently at 133.55 and the 133.80 resistance. Steeper increases could drive GBPJPY north towards the one-month peak of 135.70.
In the very short-term picture, the pair is bearish as long as it holds below the near-term falling trend line and the SMAs. In case it violates this line, bulls could take the upper hand.
