GBP/JPY Price Analysis: Reverses from 100-HMA on fresh risk-off mood
- GBP/JPY takes offers to renew intraday low, extends previous day’s pullback from weekly top.
- Russian troops started shelling Europe’s largest nuclear power plant after agreeing on safe-corridor for Ukrainian civilians the previous day.
- One-week-old horizontal support may test bears amid oversold RSI.
- 200-HMA, 61.8% Fibonacci retracement add to the upside filters.
GBP/JPY remains on the back foot for the second consecutive day, refreshing intraday low to 153.70 during Friday’s Asian session.
The cross-currency pair’s latest weakness could be linked to the failures to cross the 100-HMA, as well as news suggesting further geopolitical tensions between Russia and Ukraine.
Read: Europe's largest nuclear reactor complex is being attacked by Russia
That said, the quote’s further downside will aim for a horizontal support zone comprising multiple levels marked since February 24, around 153.45-40.
Following that, the monthly low, also the weekly bottom surrounding 152.65, will be in focus.
On the flip side, an upside clearance of the 100-HMA level of 154.18 isn’t a green card for the GBP/JPY buyers as the 200-HMA and the 61.8% Fibonacci retracement of the pair’s fall from February 23 to March 01 could challenge further upside near 154.80 and 155.20 in that order.
In a case where GBP/JPY rises past 155.20, February 24 swing high near 155.90 may offer an intermediate halt during the run-up towards 156.65.
GBP/JPY: Hourly chart
Trend: Further weakness expected