GBP/JPY Price Analysis: Bears attack two-month-old support near 165.00

• GBP/JPY pokes a short-term key support line amid downbeat oscillators.
• Clear break of two-month-old support line becomes necessary for the bears to keep reins.
• Monthly resistance line restricts corrective rebound below 169.00 hurdle.

GBP/JPY jostles with the key support near 165.00 as bears keep the reins near the lowest levels in a fortnight heading into Thursday’s London open. In doing so, the cross-currency pair braces for the first weekly loss in three as sellers poke an upward-sloping support line from early October.

That said, bearish MACD signals and downbeat RSI (14), not oversold, keeps GBP/JPY sellers hopeful of breaking the immediate support surrounding 165.00.

However, the 100-DMA and the 200-DMA could challenge the GBP/JPY pair afterward around 164.35 and 162.80 in that order.

Following that, a downward trajectory toward October’s low surrounding 159.73 can’t be ruled out. During the fall, the 160.00 psychological magnet may act as a buffer.

Meanwhile, recovery moves will have to cross a descending resistance line from October 31, near 167.85 to convince GBP/JPY buyers.

Even so, multiple tops marked in November around 169.00 could challenge the upside momentum.

It’s worth noting that the 170.00 round figure and the yearly top marked in October around 172.15 may test the pair buyers before giving them control.

Overall, GBP/JPY is likely to remain bearish but the room towards the south appears limited.

GBP/JPY: Daily chart

Trend: Limited downside expected