• GBP/JPY wavers inside short-term trading range, recently bounced off range support.
• 100-day, 50-day EMAs restrict immediate moves amid descending RSI line, not oversold.
• Key Fibonacci retracement levels also challenge the bears of late.

GBP/JPY consolidates the previous day’s losses around 153.07 during Wednesday’s Asian session.

In doing so, the cross-currency pair bounces off the 100-day EMA while staying inside the weekly trading range below 50-day EMA. Also acing as trade filters are the key Fibonacci retracement (Fibo.) levels of the late September-October upside.

Even so, descending RSI line, not oversold, keeps GBP/JPY sellers hopeful of breaking the immediate 100-day EMA support of 152.90 and battle with the 61.8% Fibo. level surrounding 152.50 for further downside.

In a case where the quote remains weak past 152.50, the mid-September lows near 150.80 and the 150.00 psychological magnet will lure the GBP/JPY bears before the yearly bottom of 148.45 marked in July.

On the contrary, recovery moves may initially poke the 50% Fibonacci retracement level of 153.60 before challenging the 50-day EMA, around 153.80 at the latest.

Even if the GBP/JPY buyers manage to cross the 153.80 hurdle, 38.2% Fibo. and a descending trend line resistance from October 21, respectively around 154.45 and 155.50, will question the quote’s further advances.

GBP/JPY: Daily chart

Trend: Further weakness expected