GBPJPY bearish technicals point to further downside
GBPJPY shifted out of its neutral phase and turned bearish on the 4 hour chart after a break below the key 144.00 level on August 8. Momentum indicators are bearish although the slopes of both RSI and MACD suggest a weaker downside momentum.
The market is currently in the lower 141.00 handle. A breakdown at this point would bring into focus the next major low at 139.84 and then the June 12 low at 139.10.
Major resistance lies at 142.50. Prices would need to bounce back above 144.00 to weaken the risk of further declines and bring back a neutral bias. Rising above the cloud and into the 145.00 handle would open the way for a re test of the 146.80 high. Clearing the July 11 high of 147.77 would see a resumption in the June to July uptrend.
The falling Tenkan sen and Kijun sen lines are supportive of the bearish bias. Further downside is expected since the market is below the Ichimoku cloud.