GBPJPY has turned sharply bearish since the start of the year on increased economic and political concerns for the pound and safe haven appeal for the yen. The pair has been trading below the 50- and 200-hour moving averages since December.
Prices are currently stuck below the Ichimoku cloud as the upside momentum from earlier in the day proved too weak to push the pair above the 50-hour moving average and RSI has dipped back below 50. Any renewed attempt upwards would likely be met with resistance at the top of the Ichimoku cloud at 166.53.
However, the near term bias remains strongly bearish and prices are likely to soon test the February 2014 low of 163.86. A break below this level would keep the pair on the current downtrend that started in the summer of 2015 when prices peaked at 195.87.
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