GBP/JPY Price Analysis: Bears in control after trendline violation, 154.00 eyed

• Bears are hopeful near 154.50 for further weakness.
• The RSI (14) range shift to 20.00-40.00 adds to the downside filters.
• Bulls can show up only if the cross gets settled above 200-EMA

The GBP/JPY pair has witnessed a steep fall in the Asian session after the cross violated the trendline placed from February 07 lows at 155.13.

Earlier, GBP/JPY remained in the grip of bears after a double top formation near the January 05 high of 157.77 and February 10 high of 158.06. After sensing significant offers near 158.06, the asset oscillated in a range of 155.30-157.29, which are February 14 low and Friday’s high respectively.

On a four-hour scale, GBP/JPY has ripped off the trendline placed from 155.13 near Tuesday’s low of 155.51. The Relative Strength Index (RSI) (14) has shifted its trading range from 60.00-40.00 to 40.00-20.00. The 50-period Exponential Moving Average (EMA) has tilted lower near 156.25 while the 200-period EMA is flat around 155.68.

Bears are now eyeing Thursday’s low at 154.46, as a violation of the same will push the spot towards the January 28 low at 154.09, followed by January 25 low at 153.13.

On the flip side, bulls can show up if the cross oversteps 200-period EMA at 155.68 decisively towards Wednesday’s high at 156.77 and Friday’s high at 157.29.

GBP/JPY four-hour chart