- GBP/JPY consolidates gains in the initial Asian session.
- Bears remain hopeful below the 153.65 level.
- Momentum oscillator moves in favor of downside momentum.
The GBP/JPY price edges higher on the last trading day of the week. The cross managed to close above the 153.60 mark after it tested a low of 153.14 in the previous session.
At the time of writing, GBP/JPY trades at 153.64, up 0.13% for the day.
GBP/JPY daily chart
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On the daily chart, the GBP/JPY cross has been in the continuous downside momentum since the beginning of the month. The pair remained under selling pressure after making a YTD high of 156.07 on May 27.
Now, if price sustains below the previous day closing at 153.63, then it could strengthen the possibility that the prevailing trend will continue to dominate the price action.
In doing so, GBP/JPY would test the first support near the 61.8% Fibonacci retracement, which extends from the low of 150.87 at 153.01.
The receding Moving Average Convergence Divergence (MACD) indicator signifies the impending lower price movement. Any downtick in MACD would ignite a fresh round of selling opportunities.
Market participants would then look out for the 152.40 horizontal support level followed by the May 10 low at 151.98
Alternatively, if price makes a sustained move above the intraday high at 153.68, then it could inch toward the 38.2% Fibonacci retracement at 154.17. The cross would then be encouraged to recoup the previous session’s high at 155.01.
Next, the bulls would attempt to capture the June 15 high of 155.48.