GBP/JPY Price Analysis: 100-DMA tests bears but recovery remains elusive below 155.60

GBP/JPY begins the week with a 60-pip gap-down, picks up bids of late.

100-DMA restricts immediate declines but bearish MACD signals, trend line breakdown favor sellers.

50-DMA, 12-day-old resistance line add to the upside filters, bears can aim for 50% Fibonacci retracement.

In doing so, the quote seesaws around the 100-DMA level while keeping the last weeks downside break of an upward sloping trend line from December 03 and the 50-DMA.

Given the bearish MACD signals joining the sustained downside break of the previous key supports, GBP/JPY prices are likely to decline further.

However, a daily closing below the 100-DMA level near 154.50 becomes necessary for the pair sellers to aim for the 50% Fibonacci retracement (Fibo.) of December-February upside, near 153.50.

Following that, Januarys bottom of 152.90 and 61.8% Fibo. near 152.50 will test the GBP/JPY bears.

Alternatively, a convergence of the 50-DMA and previous support line, around 155.50, restricts the short-term upside of the quote.

It should be noted that the GBP/JPY buyers remain unconvinced til the quote stays below a 12-day-old resistance line, around 156.60 by the press time.

GBP/JPY: Daily chart