GBPJPY has been stuck in bearish territory since its dip below the Ichimoku cloud on August 24. Today’s fall has taken it back below the 200-day moving average, increasing the bearish outlook for the medium term.
The nearest support comes from the 61.8% of the Fibonacci retracement level of the April-June upleg at 182.89. With RSI and the stochastics looking bearish below 50, there could be enough downside momentum in the near term to pull prices below this support level.
On the upside, the 50% of the Fibonacci retracement level provides the nearest resistance at 185.35. But in order to reverse the current bearish bias to a neutral one, GBPJPY needs to target the resistance at 190.40, which is the bottom of the Ichimoku cloud.
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