GBP/JPY Price Analysis: Breaks 162.50 support confluence to renew 13-day low

• GBP/JPY stays offered at two-week low, extends the previous day’s losses.
• Clear break of 100-DMA, ascending trend line from May joins downbeat oscillators to favor sellers.
• Bulls need a successful run-up beyond 166.35 to retake control.

GBP/JPY stands on slippery grounds as bears smash the 162.50 support confluence heading into Friday’s European session. With this, the cross-currency pair also renews the two-week low while extending the previous day’s losses.

In addition to the break of the 100-DMA and an 11-week-old ascending trend line, the bearish MACD signals and downbeat RSI (14) also keep GBP/JPY sellers hopeful.

That said, an upward sloping trend line from early March, near 161.20 lures the bears before the 50% Fibonacci retracement of March-June upside, near 159.85.

However, the 200-DMA level of 158.34 could challenge the GBP/JPY sellers afterward.

Alternatively, recovery remains elusive below 162.50, a clear upside break of which could direct the GBP/JPY bulls towards the weekly resistance area near 166.30-35.

It should be noted that the highs marked in June, around 167.85 at the latest, could act as a buffer during the pair’s run-up towards the yearly peak of 168.73.

Overall, GBP/JPY flashed signals of further downside but there prevails a little room to the south.

GBP/JPY: Daily chart

Trend: Further weakness expected