GBP/JPY technical analysis: Move beyond mid-136.00s (38.2% Fibo.) to pave way for additional recovery
- The GBP/JPY cross built on the previous session's modest rebound from multi-month lows and traded with a mild positive bias for the second consecutive session on Wednesday.
- The positive momentum helped the cross to make it through a one-week-old ascending trend-line resistance, albeit struggled near 38.2% Fibo. level of the 138.24-135.38 recent slide.
Meanwhile, technical indicators on the 1-hourly chart have been gaining positive traction and also recovered from the negative territory on the 4-hourly chart. Moreover, oscillators on the daily chart are yet to move out of the oversold territory and further support prospects for an extension of the attempted bounce.
Sustained move beyond mid-136.00s (38.2% Fibo. level) will add credence to the positive outlook and assist the pair to aim towards reclaiming the 137.00 round figure mark with some intermediate resistance near the 136.75-80 horizontal zone - marking 50% Fibo. level.
On the flip side, the 136.00 handle - coinciding with 23.6% Fibo. level and the descending trend-line breakpoint now seems to protect the immediate downside. Failure to defend the mentioned confluence support might turn the cross vulnerable to resume with its well-established bearish trajectory.
GBP/JPY 1-hourly chart
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.