Sentiment worsened on Thursday and Friday and risk assets were declining. On Friday, the GBPJPY cross declined half a percent and was trading at around 130.80.
The cross failed yet again near the strong resistance of previous highs and lows, which is around 132.00. As long as the price remains below this level, the medium-term outlook still seems bearish. The next supports are seen at around 130.65 and if this level is taken out, we could see a quick decline targeting the current cycle lows near 129.40.
Alternatively, if sentiment improves and the JPY starts to weaken again, we could see a small rally to 131.20. However, it looks like traders are selling rallies and this resistance might hold.
Oil and equities were strongly lower on Friday morning, which might keep the JPY crosses under pressure.