GBP/JPY technical analysis: Defending 23.6% Fib retracement support, death cross on hourly chart

• GBP/JPY is defending key Fibonacci retracement support of 133.61 in Asia.  
• The support will likely be breached in Europe as the hourly chart is reporting a bearish crossover.

GBP/JPY is currently trading at 133.76, representing 0.10% gains on the day. The JPY cross bounced up from 133.61 (23.6% Fibonacci retracement of 126.67/135.75) five hours ago to hit a high of 133.89 an hour ago.

The session lows could be refreshed with a drop below 133.61, as the hourly chart is reporting a death cross or bearish cross - the 50-hour moving average (MA) has crossed below the 200-hour MA.

Further, the daily chart is reporting a bearish candlestick arrangement – the pair created an outside bar candlestick on Monday and posted a bearish follow-through on Tuesday.

The MACD histogram is also producing lower highs, indicating a weakening of bullish momentum.

The bearish case would weaken if the pair bounces up strongly from key Fibonacci support of 133.61 and closes above 134.00.

Hourly chart

Trend: Bearish

Technical levels