Breaking through support at 121.37, the GBPJPY currency pair looks set for further declines in the Asian session.  Already failing to break above resistance at 122.00, the currency pair has declined through confluence barriers provided in the short term by both the 100 and 200-hourly simple moving averages.  A failure to break back above these levels would confirm the current downward momentum – sparked by the major USDJPY currency pair setting a new post WWII record low.

Additional technical indications are supportive of the decline, with the Stochastic oscillator reversing after hitting oversold territory.  The oscillator is currently showing a reading of 32.87 dropping from the previous 80 benchmark reading.  These readings are in conjunction with a rising trendline (117.03-120.36) break in the short term.  Breaks through major rising trendlines are indicative of a bearish move lower.

GBPJPY 60-minute timeframe – Source:  FXTrek Intellicharts

Taking into account the near support of 121.00, we would need to see a formidable break below this psychologically important barrier before making any further confirmations towards a decline to 120.50 – where the next round of support lies.

But, a break back above the 121.50 would all but ensure a retest of the 122.00 in the near term.