The GBP/JPY keeps its bearish channel

The GBP/JPY has been retracing to the downside the rally that it made from the 135.58 level to the 148.09 level. The drop has not been in a straight line, but it has formed a very well defined bearish channel with some small pullbacks on the way down as we can see on the daily chart. Once the pair got to the 141.81 level, where we can find the 50% Fibonacci retracement and the 200 day exponential moving average (blue line), it consolidates around that zone for a while until it breaks to the downside. The yen has gained a lot of strength versus its main counterparts during today’s session as the risk aversion rises in the international financial markets. That is why we see that the bearish momentum accelerates during today’s session and the GBP/JPY breaks below the 200 day EMA to come very close to the 61.8% Fibo around the 140.00 level. The 140.00 level may act as support, but below that level, the 139.00 level along with the 76.4% Fibo may also act as support. Above the 200 day EMA and the 50% Fibo, its next resistance could be the 143.00 level.