Defends ascending trend-line/100-hour SMA confluence support, at least for now

  • The GBP/JPY cross stalled its intraday slide and managed to find decent support near a short-term ascending trend-line, extending from monthly lows set on June 4.
  • The mentioned support coincides with 100-hour SMA and should now act as a key pivotal point for short-term traders amid absent relevant market-moving UK data.

Meanwhile, technical indicators on hourly charts have already started losing positive momentum and maintained their bearish bias on the daily chart, support prospects for a fresh near-term bearish breakdown.

A convincing breakthrough now seems to accelerate the downfall towards mid-137.00s before the cross eventually slides below the 137.00 round figure mark towards retesting multi-month lows, around the 136.60 region.

On the flip side, the 138.25-30 region now seems to have emerged as an immediate strong resistance, which if cleared decisively might negate the negative outlook and prompt some short-covering move towards the 139.00 handle.

GBP/JPY 1-hourly chart