GBP/JPY Price Analysis: Trying to defend 200-hour SMA/61.8% Fibo. confluence support

• GBP/JPY comes under some heavy selling on the first day of a new trading week.
• The technical set-up isn’t supportive of a firm direction and warrants some caution.

The GBP/JPY cross extended its sharp intraday pullback from levels just above mid-144.00s and dropped to fresh session lows in the last hour, albeit managed to find some support near 200-hour SMA.

The mentioned region coincides with the 61.8% Fibonacci level of the 142.32-144.96 move up, which should now act as a key pivotal point intraday traders and help determine the pair's short-term momentum.

Meanwhile, technical indicators on hourly/daily charts have been losing positive momentum/gaining negative traction and support prospects for additional downside amid the prevailing risk-off mood.

However, oscillators on the daily chart – though have been correcting from highs – have managed to hold in the bullish territory and warrant some caution before placing any aggressive bearish bets.

This coupled with last week's bullish break through a two-month-old descending trend-line might attract some dip-buying at lower levels and help limit further downside, at least for the time being.

Hence, it will be prudent to wait for some follow-through selling before confirming that the recent positive move might have run out of the steam and positioning for a further depreciating move.

GBP/JPY 1-hourly chart