GBP/JPY Technical Analysis: Drops amid fresh risk-off, eyes on two-week-old support trendline

• GBP/JPY extends losses amid fresh fears of the US-Iran war.
• The pair slipped below 23.6% Fibonacci retracement.
• Buyers will look for entry beyond 100-bar SMA.

GBP/JPY declines to 141.70 during Wednesday’s Asian session. The pair remains on the back foot after the latest news suggested Iran fired multiple missiles on the US facilities in Baghdad.

Read: Missiles being launched towards Al Asad Airbase in Iraq - Fox News

In addition to the fundamentals, pair’s declines below 23.6% Fibonacci retracement of its December 12/23 fall and sustained trading below 100-bar SMA also signal further downside.

As a result, sellers will keep eyes on an ascending support line stretched since December 25, at 141.00 during the additional weakness. However, December month low near 140.30 and 140.00 round-figure could please the Bears afterward.

On the contrary, buyers will look for entry beyond 100-bar SMA level of 142.73 while targeting 61.8% Fibonacci retracement level near 145.00.

GBP/JPY four-hour chart

Trend: Bearish