Strong correction, decline likely to extend

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  • GBP / JPY broke key levels and fell, hitting lows below 152.00.
  • The short-term outlook points to a deeper correction.

The GBP/JPY it is declining sharply from the highest levels since 2018. After approaching 153.80, the pound rebounded lower. It broke below 152.80 (21 SMA on four-hour charts and horizontal support) and fell to 151.89, hitting the lowest level in six days.

The pound is experiencing the second drop in nine days against the yen and the worst day since mid-March. The decline deteriorates the short-term technical outlook, while the long-term trend remains bullish (losing momentum).

If GBP / JPY holds at current levels, further losses seem likely. The next strong support is at 151.50 / 60. Then an extension to 151.00 seems possible. A recovery above 152.30 would ease the negative pressure that suggests some consolidation before the next downside.

If the pound recovers 153.00, it could retest 153.50. A daily close above would indicate that GBP / JPY is ready for more gains.

4 hour chart

Technical levels

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