GBP/JPY Price Forecast: Sellers eye break below 100-day SMA

The GBP/JPY retreats during the North American session on Thursday, down 0.21% as the Pound Sterling depreciates, despite the Bank of England (BoE) holding rates unchanged. At the time of writing, the cross-pair trades at 213.11 after peaking near 214.06.

GBP/JPY Price Forecast: Technical outlook

From a price action perspective, the GBP/JPY is neutral-biased, though over the last couple of trading days, the Yen has shown signs of life, driving the cross-pair to test key support at the 100-day Simple Moving Average (SMA) at 212.79.

The Relative Strength Index (RSI) shows that momentum favors further downside, with the index aiming lower, at 41.68. Hence, the GBP/JPY might continue to edge lower.

If GBP/JPY clears decisively the 199-day SMA, the next support would be the May 18 daily low of 211.26. Below sits the April 30 swing low of 210.45, before the cross aims toward the 200-day SMA at 209.32.

On the other hand, GBP/JPY must clear the 50-day SMA at 214.25 to allow buyers to challenge the 215.00 milestone. Up next, the area of interest is the 216.00 mark.

GBP/JPY Price Chart – Daily