GBP/JPY Price Analysis: Failure at 153.00 opens the door for sellers eyeing the 200-DMA
- GBP/JPY declines for three days in a row, accumulating losses of almost 1%.
- GBP/JPY is trading sideways but slightly tilted to the downside, as sellers eye the 200-DMA.
GBP/JPY extends its losing streak to three consecutive days, down some 0.01%, trading at 152.44 during the day at the time of writing. On Tuesday, the pair failed to break strong resistance around 153.60, collapsing on Wednesday, in a hotter-than-expected US inflation reading, dipping down to the 100-day moving average (DMA) at 152.57.
On Thursday, during the Asian session, the GBP/JPY cross-currency pair failed to recover the 153.00 level amid mild risk-on market sentiment. Furthermore, weaker than expected UK macroeconomic data, which investors slightly ignored, dented the British pound prospects, favoring Japanese yen bulls.
That said, the GBP/JPY pair would remain trapped within the 152.60-153.00 range as investors wait for a fresh impetus to take action.
GBP/JPY Price Forecast: Technical outlook
Daily chart
As of writing, the pair is trading beneath the Wednesday low (152.57), printing a fresh monthly low. Furthermore, the GBP/JPY pair left behind the shorter time-frames DMA’s, and GBP/JPY sellers turn their attention towards the 200-DMA lying at 151.97. If sellers reclaim the latter, the first demand zone would be the 151.00 psychological level. A breach of that level would expose an upslope support trendline that travels from July 20 low towards the September 21 low near the 150.00 area.
Contrarily, GBP/JPY buyers, if they would like to regain control, will need a daily close above the 50-DMA at 153.17. In that outcome, key supply zones would be exposed. The first supply zone would be the November 5 high at 153.77, followed by the psychological resistance level at 154.00.