GBP/JPY Price Analysis: 13-day-old support line in focus

• GBP/JPY eases from 5.5-month high, takes a U-turn from ascending trend line established since March 02.
• Overbought RSI conditions suggest pullback, 61.8% Fibonacci retracement adds to the support.
• Bulls can aim for the early-February low beyond a sustained rise past-140.00.

GBP/JPY drops to 139.56, down 0.10% on a day, ahead of Friday’s UK market open. The pair surged to the highest since February 25 the previous day but couldn’t close a downward sloping trend line from early March. This pullback gains strength by overbought RSI conditions to attack an upward sloping support line from July 28.

While sellers are likely to take entries below the aforementioned trend line support, at 139.20 now, 61.8% Fibonacci retracement of December 2019 to March 2020 downside, near 138.80, could challenge the short-term downside.

Though the pair’s sustained declines past-138.80 will make it vulnerable to refresh the monthly low of 137.75 and targeting July 23 high around 136.60 and 50% Fibonacci retracement level of 136.00 during the additional south-run.

Meanwhile, the pair’s ability to cross the multi-week-old resistance line, currently around 140.20, will propel the upside moves toward February 04 low near 140.90.

GBP/JPY daily chart

Trend: Pullback expected