GBP/JPY: Recovery loses steam

By FXStreet FXStreet (Córdoba) – GBP/JPY rose sharply last week and recovered from multi-month lows. On Friday pulled back and today continued to correct lower.

During the European session bottomed at 184.57, 200 pips below daily highs and then bounced to the upside. It was trading at 185.20, down 0.45% for the day.

GBP/JPY technical outlook

On a wider perspective the pair is still facing pressure. Earlier on September bottomed at 180.30 and from there is recovering. The rally from the lows pushed the price momentarily above 187.00 last week; but failed to hold and pulled back.

The intraday trend favors the downside, as GBP/JPY remains below the 20-SMA in 4-hours charts, but if it manages to climb on top of 185.70/80 it could resume the upside. The pound needs to confirm levels on top of 187.00 to open the doors to more gains.

On the downside, the immediate support to watch is 184.60/70 and below here 184.10/20; a break below the last one could signal that the recovery is over.
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Source:: FX Street