GBP/JPY stays depressed near the weekly bottom, down 0.17% intraday near 155.50 as traders await UK Consumer Price Index (CPI) data during early Wednesday.

That said, the cross-currency pair’s failure to cross the 10-DMA level during the early Tuesday’s advances joins RSI retreats to direct traders to attack the 21-DMA.

It should, however, be noted that the quote’s daily closing below the 21-DMA level of 155.65 will direct the GBP/JPY bears towards the mid-November highs near 154.75.

Following that, a convergence of the 100-DMA, 50-DMA and 50% Fibonacci retracement level of July-October 2022 upside, near 153.35-30 will be crucial to watch.

Meanwhile, the corrective pullback will again aim to cross the 10-DMA level of 156.50 before jostling with multiple resistances around 157.30.

Even so, a horizontal area comprising multiple levels marked since late October, near 157.70-80, could challenge the GBP/JPY bulls before allowing them to test the year 2021 peak of 158.22.

The pair justifies technical signals to return to the seller’s desk, despite printing mild intraday gains by the press time.

Among them, a bearish Doji candlestick below the 200-HMA and a descending resistance line from January 12, not to forget the steady Momentum line, play their roles.

That said, the GBP/JPY prices currently drop towards 50-HMA level near 156.30 while 23.6% Fibonacci retracement (Fibo.) of January 12-14 declines, near 156.00, will challenge the pair bears afterward.

In a case where the pair remains bearish past 156.00, the monthly low near 155.45 will be on the cards.

GBPJPY Faces Bearish Weakness Below 157.0

Jan 19 2022

Stop Loss -0.93%

Holding time 22d0hr

155.500

Entry price

156.941

Stop loss price