GBP/JPY: Risk of More Losses Remain
Key Highlights · British pound continued to struggle not only against the US dollar but also against the Japanese Yen. · There is a major bearish trend line formed on the 4-hours chart of GBP/JPY, which is acting as a barrier for buyers. · In the UK, the GfK Group Consumer Confidence posted a minor increase from the last reading of 1 to 2 in December 2015.
GBP/JPY Technical Analysis The GBP/JPY pair is under a lot of bearish pressure, and it is following a monster bearish trend line formed on the 4-hours chart. The pair attempted on many occasions to break the highlighted trend line and resistance area, but failed to settle above it.
GBP/JPY 4 Hourly Chart
Currently, the pair is finding bids near the 180.0 area. So, there is a chance of a minor recovery from the current levels. On the upside, the an initial resistance can be around the 38.2% Fib retracement level of the last drop from the 183.90 high to 179.94 low.
On the downside, a break below the last low of 179.94 may call for more losses may be towards the 179.50 level.