GBPJPY turns bearish as it drops below strong support

The GBPJPY cross traded weaker on Tuesday and was seen hovering near 134.40 during the US session, although it was up considerably from daily lows printed at 134.00.

The pound dropped below previous lows and highs, which are converged near 134.60. That seems to be a significant level for this cross, and as long as it remains below, the short-term outlook appears bearish. 

However, should the price jump back above this level, sentiment might improve and further rally cannot be ruled out. 

In case of a bearish scenario, the support is at today's lows of 134.00, and another level to watch should be near 133.00.

Alternatively, if bulls prevail today, the resistance is at the mentioned 134.60 level, and if it is taken out, we could see a rally toward 135.00.

The pound is the only major currency currently down against the US dollar, which is dragging this cross lower. If the GBPUSD pair turns positive for today, the cross can move higher as well.
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