GBP/JPY Price Analysis: Breaks weekly support on the way to 165.00

• GBP/JPY takes offers to refresh intraday low, extending pullback from 100-HMA.
• Impending bear cross on MACD adds strength to the downside bias targeting 200-HMA.
• Overall trend remains bullish until the quote drops below 160.00.

GBP/JPY breaks one-week-old support as it refreshes an intraday low around 165.25 during Monday’s Asian session.

In doing so, the cross-currency pair extends pullback from the 100-HMA amid a looming bearish signal from the MACD.

With this, the quote aims to retest the 200-HMA surrounding 165.00 before challenging the 164.50 horizontal support area.

Following that, the 61.8% Fibonacci retracement level of June 16-21, near 163.00, will precede the 161.00 round figure before directing GBP/JPY bears towards the monthly bottom surrounding 160.00.

On the contrary, a clear upside break of the 100-HMA, at 166.20 by the press time, could recall short-term buyers.

However, multiple hurdles near 167.50 appear to test the bulls ahead of offering them the monthly high of 168.73.

Overall, a clear downside break of the short-term support suggests that the GBP/JPY prices are likely to decline further. However, the bears have limited room to cheer and may remain cautious unless witnessing a daily closing below 160.00.

GBP/JPY: Hourly chart

Trend: Limited downside expected