#GBPJPY @ 162.147 keeps the previous day’s losses around two-week low, depressed of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• GBP/JPY keeps the previous day’s losses around two-week low, depressed of late.
• Monthly bearish channel, sustained trading below previous support line signals further downside.
• 200-SMA appears the key challenge to bears amid sluggish RSI.

The pair currently trades last at 162.147.

The previous day high was 162.79 while the previous day low was 161.62. The daily 38.2% Fib levels comes at 162.06, expected to provide support. Similarly, the daily 61.8% fib level is at 162.34, expected to provide resistance.

GBP/JPY holds lower ground at the intraday bottom surrounding 162.00 as pair traders await the all-important Bank of Japan (BoJ) monetary policy meeting announcements early Friday.

Also read: GBP/JPY rebounds from 162.00 ahead of UK Manufacturing data and BoJ policy

In doing so, the cross-currency pair remains inside a downward-sloping trend channel from March 01 while keeping the early week’s downside break of the five-week-old support-turned-resistance line.

It’s worth noting that the absence of an oversold RSI and the quote’s sustained trading below the 50-bar Simple Moving Average (SMA) adds strength to the bearish bias.

That said, the stated channel’s bottom line, around 161.65 by the press time, appears to put a floor under the GBP/JPY prices. Following that, the 200-SMA level, near 161.20 by the press time, acts as the last defense of the buyers.

In a case where GBP/JPY remains bearish past 161.20, the sellers may aim for the mid-February swing low surrounding 160.50 and the 160.00 round figure.

Alternatively, recovery moves can target the 163.00 round figure but may have a tough time crossing the 163.25-30 resistance confluence, encompassing the aforementioned channel’s top line and the 50-SMA.

Even if the quote rallies past 163.30, the previous support line from early February, near 163.50, could challenge the run-up before directing the GBP/JPY bulls towards the previous monthly peak surrounding 166.00.

Trend: Further downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 162.13 at the time of writing. Pair opened at 162.23 and is trading with a change of -0.06% % .

The pair is trading below its 20 Daily moving average @ 162.3, above its 50 Daily moving average @ 160.49 , below its 100 Daily moving average @ 163.34 and below its 200 Daily moving average @ 163.44

The previous day high was 162.79 while the previous day low was 161.62. The daily 38.2% Fib levels comes at 162.06, expected to provide support. Similarly, the daily 61.8% fib level is at 162.34, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 161.64, 161.04, 160.46
• Pivot resistance is noted at 162.81, 163.38, 163.98

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