- GBP/JPY remains neutral to downward bias but retains potential upside risks.
- A break below key support levels at 178.03 and 176.30 to pave the way for a deeper fall toward the March 23 low of 158.25.
- On the upside, the pair needs to stay above the 180.00 level to maintain the potential for an upward move.
On Friday, the GBP/JPY remains offered late in the North American session and is set to end the week in the red after the pair slumped below the Ichimoku Cloud (Kumo), which exacerbated its fall to new two-month lows of 178.33. At the time of writing, the cross is trading at 180.33.
The pair is neutral to downward biased, but upside risks remain. If bears conquer key support levels at 178.03, the October 3 low, followed by the July 28 cycle low at 176.30, that would cement the downtrend and open the door for a fall toward the March 23 low of 158.25.
On the other hand, if the pair stays above 180, that would open the door to break the first key resistance level seen at the bottom of the Kumo at 182.12. A breach of the latter will expose the confluence of the top of the Kumo, the Kijun-Sen, and the Senkou Span B at 183.49, ahead of the 184.00 mark.