GBPJPY Reaches New Multi-Week Low

GBPJPY Extends Decline, Hits Lowest Levels Since Mid-March Amid Yen Strength and BoE Rate Cut

GBPJPY continued its downward trend and reached its lowest levels since mid-March during the European session on Friday.

The pair remains in a steep decline from the July 11 peak of 208.11, the highest since August 2008. This downtrend has been driven by renewed yen strength following Japan’s interventions, alongside pressure on sterling from the recent BoE rate cut.

Bearish signals have intensified with a break through the rising daily cloud (spanning between 200.39 and 196.71), the breach of the 200DMA (191.74), and today’s violation of Fibonacci support at 189.55 (61.8% of the 178.73/208.11 uptrend).

The pair is on track to close the fourth consecutive week in the red, adding to the negative outlook following July’s largest monthly loss since June 2016. A reversal pattern is forming on the monthly chart, further contributing to the bearish sentiment.

Deeply oversold daily indicators might lead to partial profit-taking by week’s end, with any upticks potentially setting up for further declines.

The broken 200DMA has become initial resistance (191.74), followed by the broken Fibonacci 50% support (193.42) and the daily cloud base (196.83), which are expected to limit any stronger rebound and maintain the bearish trend.

Key targets include 185.66 (Fibonacci 76.4% of the 178.73/208.11 move) and 183.56 (weekly cloud top).

Res: 189.95; 191.74; 193.42; 196.83
Sup: 188.99; 187.95; 185.66; 183.56