GBPJPY has maintained aggressive selling movement over the last sessions, recording a new three-month low of 140.10 earlier today.
The bearish structure in the very short-term is confirmed by the technical indicators, which are hovering in the oversold zone. The MACD is extending its negative tendency well below trigger and zero lines, while the RSI is flattening below the 30 level.
Should the pair make another run lower, it’s likely to meet support at the 139.30 barrier, taken from the lows on November 2019. A successful break below this key level would open the way for the 138.90 support, which has been standing since October 2019.
In the positive scenario, the pair could improve above the lower Bollinger band level to challenge a stronger resistance area of 140.90 – 141.20. The 142.34 resistance, which lies near the 20-day simple moving average (SMA), remains a big highlight ahead of the 100-day SMA currently at 142.80.
Meanwhile, in the short-term picture, the situation seems to be getting more interesting as the 20-day SMA crossed lower to the 40- and the 100-day SMA. Should the lines intersect each other and keep a large distance, the negative outlook may turn even brighter.
In brief, GBPJPY is expected to continue the southward run in the short-term, while in the medium-term, the pair looks to be neutral. A break below the 138.90 support would endorse the negative structure in the bigger picture.
