GBP/JPY Price Analysis: Sharp correction, downside likely to extend

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

The GBP/JPY is retreating sharply from the highest levels since 2018. After approaching 153.80, the pound bounced to the downside. It broke under 152.80 (21 simple moving average in four-hour charts and horizontal support) and tumbled to 151.89, hitting the lowest in six days.

The pound is having the second decline out of the last nine days versus 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, more losses seem likely. The next strong support stands at 151.50/60. Below, an extension toward 151.00 looks possible. A recovery back above 152.30 would alleviate the negative pressure suggesting some consolidation before the next leg lower.

If the pound recovers 153.00, it could test again the 153.50 are. A daily close above would sign GBP/JPY is ready for more gains.

GBP/JPY 4-hour chart