GBP/JPY Price Analysis: Clings to 50-DMA amid bearish MACD

• GBP/JPY sellers flirt with short-term key moving average following three-day downtrend.
• Bearish MACD, U-turn from crucial resistance line favor sellers.
• Momentum signals need for clear breakdown to highlight 151.60-70 support area.

GBP/JPY holds lower ground near one week low after declining for third consecutive days till Tuesday morning in Asia. That said, the cross-currency pair seesaws around 50-DMA while flashing 153.52 as a quote.

Given the pair’s sustained reversal from a monthly resistance line, backed by bearish MACD, GBP/JPY is likely to remain depressed. However, the recent bounce of the Momentum line probes the pair sellers.

Hence, a clear downside break of 153.50 becomes necessary for the latest downside to sustain.

Following that, a convergence of 100-DMA and an ascending support line from late February, around 151.70-60 will be in the spotlight. It’s worth noting that the quote may take a breather around 152.00 during the stated fall.

Alternatively, the 154.00 threshold and a downward sloping trend line from late May, near 155.00, could test the recovery moves targeting a fresh high of the year above 156.06.

Also acting as an upside filter is the previous week’s top surrounding 155.15-20.

GBP/JPY daily chart

Trend: Further weakness expected