GBP/JPY Price Analysis: Sellers attack 20-DMA in search of further downside below 166.00

• GBP/JPY takes offers to refresh intraday low, prints three-day downtrend.
• Bearish MACD signals hint at further downside below immediate DMA support.
• Weekly resistance line holds the key to buyer’s entry, seven-week-long support line appears crucial for bears.

GBP/JPY remains on the back foot for the third consecutive day, despite the sellers' recent struggle to break the 20-DMA support during Thursday’s Asian session. That said, the cross-currency pair refreshes intraday low near 165.50 by the press time.

Given the quote’s sustained weakness, as portrayed by the bearish MACD signal, coupled with the trading below the one-week-old descending resistance line, the GBP/JPY prices are likely to remain weak.

It’s worth noting, however, that a clear downside break of the 20-DMA support near 165.50 becomes necessary for the intraday sellers before they aim for the ascending support line from May 12, at 164.25 by the press time.

Should the GBP/JPY prices remain weak past 164.25, the 50-DMA level of 162.77 can challenge the bears before directing them to the monthly low of 160.00.

Meanwhile, recovery moves need validation from the weekly resistance line, close to 166.40 at the latest.

Following that, the recent swing high and the monthly top, surrounding 167.85 and 168.75 in that order, will challenge the GBP/JPY bulls.

If at all the quote rises past 168.75, the odds of witnessing a run-up towards the 170.00 threshold can’t be ruled out.

GBP/JPY: Daily chart

Trend: Further weakness expected