GBP/JPY Closes Below 50-Day SMA for First Time Since January

24. Juli

GBP/JPY approaches the June low (197.21) after closing below the 50-Day SMA (201.76) for the first time since January.

GBP/JPY Outlook

GBP/JPY falls to a fresh monthly low (197.78) as it extends the series of lower highs and lows from the start of the week, with a breach below the June low (197.21) raising the scope for a move towards the 195.70 (61.8% Fibonacci extension) to 196.60 (23.6% Fibonacci extension) region.

Next area of interest comes in around 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) but lack of momentum to push below the June low (197.21) may curb the recent decline in GBP/JPY.

Need a move back above the 202.00 (23.6% Fibonacci extension) to 202.40 (50% Fibonacci extension) area for GBP/JPY to snap the bearish price series, with the next hurdle coming in around 204.90 (61.8% Fibonacci extension).

--- Written by David Song, Strategist at FOREX.com

2. Aug.

Anmerkung

GBP/JPY falls more than 5% this week to clear the March low (187.97), with the recent selloff in the exchange rate sending the Relative Strength Index (RSI) into oversold territory for the first time in 2024.

GBP/JPY may continue to give back the advance from earlier this year as long as the RSI holds below 30, with a breach below 186.60 (50% Fibonacci extension) bringing the February low (185.24) on the radar.

A break/close below the 183.90 (50% Fibonacci retracement) to 184.80 (23.6% Fibonacci extension) region opens up 179.70 (61.8% Fibonacci extension), but lack of momentum to test the February low (185.24) may curb the bearish price action in GBP/JPY.

--- Written by David Song, Strategist at FOREX.com