GBPJPY has experienced a steep uptrend since late September, with the price gaining almost 15% and posting a fresh 6½-year high of 172.10. However, the pair has declined moderately from its recent peak and has been trading below its 50-day simple moving average (SMA) in the last couple of sessions.
The momentum indicators currently suggest that bearish forces are intensifying. Specifically, the RSI is declining beneath its 50-neutral mark, while the MACD histogram is retreating below both zero and its red signal line.
In the negative scenario, bearish actions could send the price to test the recent low of 164.50. Sliding beneath that floor, the bears could aim for the recent support of 163.04, which overlaps with the 200-day SMA. Failing to halt there, the attention could shift to 162.30 before the 159.70 hurdle appears on the radar.
On the flipside, should buyers re-emerge and push the price higher, initial resistance could be met at the 50-day SMA, currently at 165.91. Piercing through this region, the price could challenge the October resistance of 167.50. Conquering this barricade, the bulls may then aim for the double-top region of 169.08.
Overall, GBPJPY appears to have begun another round of weakness as negative momentum is intensifying. Therefore, a break below the 200-day SMA could spark a steep downtrend.
