GBP/JPY Price Analysis: Pokes weekly support near 166.50 on upbeat Japan Q3 GDP

• GBP/JPY sellers attack short-term key support line to reverse the previous day’s gains.
• Japan Q3 GDP came in better than initial forecasts, improved to -0.2% QoQ.
• Bearish MACD signals add strength to the downside bias, 100-HMA acts as additional support.
• Nine-day-old horizontal area appears a tough nut to crack for buyers.

GBP/JPY remains pressured around 166.47 during Thursday’s Asian session, as bears jostle with an upward-sloping support line from Monday. In doing so, the cross-currency pair justifies firmer Japan data and the Moving Average Convergence and Divergence (MACD) indicator’s bearish signals.

That said, Japan’s final readings of the third quarter (Q3) Gross Domestic Product (GDP) came in better than initial forecasts as the QoQ figures improved to -0.2% versus -0.3% while the GDP Annualized came in -0.8% versus -1.1% expected and -1.2% prior.

Technically, the quote’s failure to cross a horizontal region comprising multiple tops marked since November 28, around 167.40-50, keeps sellers hopeful.

However, the 100-HMA level of 166.15 acts as an extra downside filter to break for the GBP/JPY sellers before approaching the monthly low of 164.00.

In a case where GBP/JPY remains bearish past 164.00, November’s trough surrounding 163.00 will be in focus.

Alternatively, an upside clearance of the 167.40-50 region needs validation from the late November swing high surrounding 169.00 to convince the buyers.

GBP/JPY: Hourly chart

Trend: Further downside expected