GBPJPY bears dominated on Thursday, extending the two-week old downward correction to the 132.00 territory. Simultaneously, the RSI tumbled below its 50 neutral mark, while the MACD lost further ground below its trigger line, both flagging that there is more bearish fuel in store.
Yet, it remains to be seen if the tentative ascending trendline drawn from the 3 ½ -year low of 124.00 can approve additional downside corrections that may reach the 130.63 support area. Lower, the 128.00-129.28 restrictive region will be closely watched in case of steeper declines before the 2019 trough of 126.53 comes under the spotlight.
Should the trendline give the lead to the bulls, the price may re-challenge the 135.20-136.30 resistance region. Crossing that border, the price momentum may ease near 138.20 and if this fails to hold too, the door would open for the 139.72 peak, a break of which is required to boost positive sentiment. Still, medium-term traders would like to see a a sustainable rally above 144.50 to change their current neutral view to a bullish one.
In brief, GBPJPY is holding a bearish short-term bias, but only a clear break below the trendline could expose the pair to additional losses.
