GBP/JPY Price Analysis: Bears keep reins around 162.50 inside monthly triangle

• GBP/JPY prints three-day downtrend, stays pressured of late.
• Clear downside break of 50-DMA, bearish MACD signals favor sellers.
• 21-DMA holds the key to buyer’s return, monthly triangle restricts short-term moves.

GBP/JPY justifies the previous day’s downside break of the 50-DMA inside a monthly symmetrical triangle during Wednesday’s Asian session. That said, the cross-currency pair drops to 162.53 while printing the three-day downtrend by the press time.

Given the quote’s recent break of the key DMA, as well as the bearish MACD signals, GBP/JPY prices are likely to decline further.

In that case, the 100-DMA level surrounding 161.20 could lure the sellers before the stated triangle’s lower line, around 160.50 by the press time, could test further downside.

Also acting as a downside filter is the previous monthly low around the 160.00 threshold.

Alternatively, recovery remains elusive until the quote stays below the immediate triangle’s upper line, close to 163.25 at the latest. It’s worth noting that the 50-DMA level near 162.85 guards the quote’s immediate upside.

Should the GBP/JPY prices rally beyond 163.25 hurdle, the 21-DMA level of 164.47 can act as the last defense of the bears.

Overall, GBP/JPY is likely to witness further weakness in prices inside the nearby triangle.

GBP/JPY: Daily chart

Trend: Further weakness expected