The GBPJPY currency pair is under firm bearish pressure and are on course for a fifth consecutive trading session of losses after falling over 0.5% during the Wednesday trading session as the market sentiment that the government may intervene on the weakening Yen continued to boost the currency.
The currency pair is also weighed by the economic indicators from the UK, which have missed expectations. The latest unemployment rate data revealed a setback in the job market as the three-month unemployment rate unexpectedly spiked to 4.0%, surpassing both market consensus and the previous release of 3.8%.
Technical
The 4H chart shows that the cross has been under firm bearish pressure, indicated by the appearance of the falling wedge trading pattern and the price action firmly trading below the 50-SMA (blue line). Therefore should the bearish momentum persists, a trading opportunity could exist at the 180.140 support level lower. Should the bears sustain a move below the level, a short-term trading opportunity could exist at the 179.385 support level lower.
However, a push above the 23.60% Fibonacci retracement level would bring the 181.496 and 182.226 resistance levels into play as the bulls look to test the golden ratio above.
Summary
The cross has been under firm bearish pressure, and should the pressure persist, a short-term trading opportunity could exist at 180.140 support levels, with 179.385 as the likely target for the bears.
Sources: TradingView, Reuters, Trading Economics.
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