GBPJPY is making a second attempt to jump back into the range of 135.73-132.00 after the drop to a five-week low of 130.63.
The 132.00 level did not let the bulls pass on Thursday and should it stand firm once again, the price may reverse south to retest this week’s support of 130.63, where any violation may trigger a sharper decline towards the 128.00 number. Lower, the price could revisit the 2019 trough of 126.53 before meeting the 124.73-124.00 restrictive zone.
Alternatively, if the pair claims the 132.00 hurdle, it may need to clear its short-term moving averages around 133.00 in order to rally towards 135.00. Moving higher, and more importantly, closing above the upper boundary of 135.73, the door would open for the 200-day SMA currently near 136.92.
Regarding the medium-term picture, the outlook remains bearish as long as the price is trading below 139.20.
Summarizing, GBPJPY could resume its neutral short-term profile if it manages to successfully overcome the 132.00 level.
