Technical EYE's analysis of GBP/JPY indicates that the pair may trade with a recovery bias, supported by the 21-day moving average. Specific downside and upside levels are listed as guides to its future movements.
Technical EYE's main scenario for GBP/JPY is that any rebound is likely to be met by selling, with the pair expected to remain in a downtrend after falling below the 100-day and 5-day moving averages. The first level is the 51,500 mark. If that level breaks, the 51,388 low of 14 October and the 51,000 mark will be the next targets. If the decline continues, the 50,658 low of 8 October, the 50,568 low of 1 October, and the 50,500 and 50,000 marks will be tested.
Under the alternative scenario, if the pair rises, the lower boundary of the Ichimoku cloud at 52,130.75 will be the first level. If it breaks above that level, the 52,500 mark, the 52,873 high of 29 October, the 52,938 high of 23 October, the upper boundary of the Ichimoku cloud at 52,943, and the 53,000 and 53,500 marks will be the next targets.
In addition, combinations of the cloud's upper and lower boundaries and key levels are cited as factors that may indicate the pair's short-term direction.