Overview
The GBP/JPY pair remains neutral for consolidation above a temporary low of 180.36. Further decline is expected as long as resistance at 187.36 holds. Below 180.36 will target the key support level of 174.86. However, a decisive breakout of 187.36 will shift the focus back to resistance of 195.26. A breakout of the mid-term trend line support is taken as a sign of trend reversal. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY came close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A break of 174.86 will confirm trend reversal and result in a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67.
