FX.co ★ GBP/JPY to decline further

GBP/JPY Downtrend

The GBP/JPY pair was trading at 162.47 at the time of writing. It could drop deeper as long as it stays under the downtrend line. As you can see on the H1 chart, the price found demand at 161.53. This level stands as a downside obstacle.

In the short term, it could retest the downtrend line which represents a dynamic upside obstacle. Only jumping and stabilizing above it may invalidate a downside continuation and could bring new buying opportunities as the rate could develop a larger growth.

GBP/JPY Trading Conclusion

Staying below the downtrend line and dropping below 161.53 downside obstacle could confirm further drop and could bring new selling opportunities.