GBP/JPY technical analysis: 61.8% Fibo, 138.15/25 restrict short-term declines

• GBP/JPY weakens from a two-week-old falling trend-line.
• 61.8% Fibonacci retracement triggered the pair’s bounce last week.
• 21-day EMA, three-month-old resistance-turned-support adds to the support.

Having reversed from eight-day highs, GBP/JPY declines to 139.71 during Friday’s Asian session.

The pair now seems to revisit 61.8% Fibonacci retracement of May-August south-run, at 138.91, while a confluence of 21-day Exponential Moving Average (EMA) and an upward sloping trend line since July-end, around 138.15/25, could restrict pair’s additional weakness.

In a case where sellers dominate below 138.15, July month high near to 137.80 might offer an intermediate halt to pair’s drop towards 50% Fibonacci retracement of 136.55.

On the contrary, pair’s rise beyond two-week-old resistance line, at 140.63 now, can take aim at the previous month high around 141.51 and May-end low close to 141.74 ahead of pushing bulls towards late-April bottoms close to 143.75.

GBP/JPY daily chart

Trend: pullback expected