- GBP/JPY remains under pressure around major supports after breaking the three-week uptrend.
- The descending RSI line, the confirmation of the rising wedge keeps the sellers bullish.
- 100-SMA, monthly support line limits immediate downside, bulls need to break through 157.35 to regain control.
GBP/JPY remains depressed around 156.20, down 0.20% intraday, in Monday’s Asian session.
The cross-currency pair posted the first negative weekly close in four weeks at the end of Friday’s North American session, while confirming a week-old rising wedge bearish chart trend.
The downward sloping, non-oversold RSI line also acts as a bearish catalyst.
However, a convergence of the 100-SMA and an ascending trendline from January 24 near 156.00 limits the immediate price decline.
If the quote drops below 156.00, the 200-SMA level of 155.80 and the recent low hovering around 155.30 could act as intermediate stops during the run south to the January low at 152 .90.
Meanwhile, recovery moves may initially challenge the declared rising wedge support line around 156.50 at press time.
However, the round figure of 157.00 and the upper line of the indicated bearish formation near 157.35 will test GBP/JPY buyers going forward.
That said, the pair’s rise above 157.35 will not hesitate to refresh the 2022 peak, currently around 158.00.
GBP/JPY: four-hour chart
Trend: further weakness expected