GBPJPY has turned increasingly bearish after breaking below key support of 151.63. The pair touched a three-year low of 150.07 early on Monday.
Momentum is bearish, as the daily RSI has fallen below 50 and is trending down. This suggests risk of further downside moves, and the market could see a resumption of the long term downtrend that started from 195.87 back in June 2015. The 50 and 200-day moving averages are negatively aligned and sloping down, which also support a bearish bias.
Next support lies at the 61.8% Fibonacci retracement of the 116.80 to 198.87 upleg. This level is at 146.92. Important resistance to the upside lies at the 50% Fibonacci at 156.29 and at the 50-day moving average at 157.00.
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