GBP/JPY Rebounds but Remains Neutral Amid Ongoing Downside Risk

The GBP/JPY currency pair rebounded after falling to 209.55 last week, but its initial bias remains neutral for now.

Risk remains on the downside as long as the 4H EMA (now at 213.94) holds, with a break of 211.31 minor support potentially bringing a retest of 209.55 low and resuming the fall from 219.56 to 38.2% retracement of 184.35 to 219.56 at 206.10.

In the bigger picture, focus is on the 55 W EMA (now at 208.91), with a strong rebound from there keeping the uptrend from 123.94 (2020 low) intact and another rally expected through 219.56 at a later stage.

A sustained break of 55 W EMA, however, would argue that it's already in a medium-term downtrend to 184.35 support.