• GBP/JPY struggles for clear directions, grinds near intraday high of late.
• Multiple pullbacks from the key SMAs, impending bear cross on the MACD tease sellers.
• Bulls should remain cautious below descending trend line from late June.

GBP/JPY steadies near 163.20, after rising for the last three days, during the initial Tokyo session on Wednesday.

The cross-currency pair, however, remains on the bear’s radar as it has repeatedly failed to cross the 100-SMA in the last few days. Also keeping sellers hopeful is the looming bear cross on the MACD.

However, a clear downside break of the weekly support line near 162.70 becomes necessary for the GBP/JPY sellers to retake control.

Following that, a downward trajectory towards 161.00 and the 160.00 psychological magnet can’t be ruled out. Though, the monthly low near 159.45 might challenge the bears afterward.

On the contrary, a convergence of the 100-SMA and the 50% Fibonacci retracement of the June-August downside, near 163.60 restricts the immediate upside of the GBP/JPY pair.

Also acting as an upside filter is the 200-SMA and 61.8% Fibonacci retracement level, respectively around 163.90 and 164.70.

It should be noted that the GBP/JPY bulls remain skeptical until the quote stays below the downward sloping resistance line from late June, around 165.75 by the press time.

GBP/JPY: Four-hour chart

Trend: Further weakness expected