GBPJPY is retreating around the 40-day simple moving average (SMA) after a strong sell-off on Thursday. The short-term SMAs are pointing down, while the technical indicators are confirming the recent bearish bias. The stochastic is approaching the oversold zone again after the bearish cross within the %K and %D lines, and the RSI is flattening in the negative region.
If the price falls further, immediate support could come from the 152.80 barrier before meeting the 200-day SMA at 151.94. More losses could open the way for the 148.45-148.90 support zone but first it needs to penetrate the Ichimoku cloud at 151.20.
Alternatively, the bulls may test the 20-day SMA around 156.00 before challenging the more-than-five-year-high of 158.20. Even higher, the 160.00 psychological mark could attract attention, taken from the peak on June 2016.
All in all, GBPJPY have been in a negative correction since October 20 in the short-term, but in the broader outlook the market is still bullish.
