• GBP/JPY slid below crucial daily EMAs, namely the 200 and the 100-day EMAs.
• The GBP/JPY must crack the 161.00 figure for a bearish continuation.
• On the other hand, GBP/JPY buyers reclaiming 162.00 could pave the way for further upside.

The GBP/JPY registers minuscule gains as Friday’s Asian session begins after tumbling below the 200 and 100-day Exponential Moving Averages (EMAs), at 161.82 and 161.98, respectively. After forming a dark cloud cover and missing to hold to 162.00, the GBP/JPY is trading at around 161.70.

GBP/JPY Thursday’s price action changed the pair’s bias as sellers reclaimed solid support areas, which turned to resistance. Although the Relative Strength Index (RSI) is in bullish territory, its slope aims downwards, suggesting that sellers are gaining momentum. Still, the Rate of Change (RoC) suggests the opposite, that buyers are moving in. Therefore, the GBP/JPY bias is neutral.

For a GBP/JPY bearish continuation, traders must drag prices toward the 50-day EMA at 161.10. Once cleared, the GBP/JPY might test the 20-day EMA at 160.87 before dropping to the 160.00 figure.

As an alternate scenario, if the GBP/JPY reclaims 162.30, that could open the door for further upside. Hence, the GBP/JPY first resistance would be the February 23 daily high at 162.85. The next stop would be the weekly high at 163.75 before testing a major five-month-old downslope trendline that passes around.

GBP/JPY Daily chart

GBP/JPY Key technical levels