#GBPJPY @ 163.198 pauses four-day downtrend at a fortnight low., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• GBP/JPY pauses four-day downtrend at a fortnight low.
• Impending bearish MACD signals, downbeat RSI keeps sellers hopeful.
• A convergence of 21-DMA and 50-DMA precedes 100-DMA to restrict immediate downside.

The pair currently trades last at 163.198.

The previous day high was 164.62 while the previous day low was 162.75. The daily 38.2% Fib levels comes at 163.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.91, expected to provide resistance.

GBP/JPY remains defensive around 163.30, holding lower ground near the two-week bottom heading into Monday’s European session. In doing so, the cross-currency pair jostles with multiple key Daily Moving Averages (DMAs) after declining for the last four consecutive days.

That said, the 21-DMA and the 50-DMA confluence near 163.30-25 appears to be the immediate support for the GBP/JPY pair ahead of the 100-DMA support near 163.00.

If at all the quote declines below 163.00, the 50% Fibonacci retracement level of May-June upside, near 162.10, precedes a four-month-old support line, near 161.60, to challenge the quote’s further declines.

In a case where the GBP/JPY prices break the 161.60 support, the odds of witnessing a south-run towards the 61.8% Fibonacci retracement level near 160.50 can’t be ruled out.

Alternatively, the 164.00 threshold precedes the tops marked in July and September, respectively near 166.30 and 167.35, which could challenge GBP/JPY buyers.

Should the cross-currency pair roses past 167.35, the yearly top marked in June around 168.75 and the 170.00 round figure will be in the spotlight.

Overall, GBP/JPY remains on the bear’s radar despite the latest inaction.

Trend: Further downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 163.22 at the time of writing. Pair opened at 163.24 and is trading with a change of -0.01% % .

The pair is trading below its 20 Daily moving average @ 163.33, below its 50 Daily moving average @ 163.27 , above its 100 Daily moving average @ 163.06 and above its 200 Daily moving average @ 160.05

The previous day high was 164.62 while the previous day low was 162.75. The daily 38.2% Fib levels comes at 163.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.91, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 162.45, 161.66, 160.57
• Pivot resistance is noted at 164.33, 165.42, 166.21

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