GBPJPY completed five straight negative days with strong momentum, while during Friday’s session the price is paring some losses. On Thursday, the pair recorded a fresh 11-week low of 145.67 and is trading slightly higher from this trough. The neutral to bearish picture in the short term looks to last for a while longer after prices failed to break below 145.67 over the last couple of sessions in the 4-hour chart.
From the technical point of view, the negative bias is supported by the deterioration in the RSI indicator. The index is sloping slightly to the downside in the negative zone, however, the MACD oscillator is flattening near its trigger line below the zero line.
If prices continue to head lower, support should come from the 145.70 support level. A drop below this area would reinforce the short-term bearish view and open the way towards the 145.00 psychological level, which has been a major support area in the past.
However, should an upside reversal take form, immediate resistance will likely come from the 147.25 barrier. A break above this level could open the way for a bullish correction, with the next resistance coming from the 23.6% Fibonacci retracement level of 147.60 of the downleg from 153.80 to 145.70.
Overall, GBPJPY has been trading well below the 20- and 40-simple moving averages (SMAs) in the near term, signaling that the bearish structure will continue.
