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The GBP/JPY cross manages to find support above the 180.00 level during the early European session on Wednesday. The downtick of the pair is supported by the fear of FX intervention by Japanese authorities. The cross currently trades around 180.13, gaining 0.09% on the day.Early Wednesday, Japan’s top currency diplomat Masato Kanda said any intervention would not target forex levels but volatility while mentioning that it’s normal for authorities not to comment on whether they intervened or not. Additionally, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said on Monday that he will continue to take appropriate steps on FX, but still have no comment on whether Japan intervened in the FX market.From the technical perspective, the GBP/JPY cross holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, highlighting the path of least resistance for the cross is to the downside.
The first resistance level of GBP/JPY is seen near the 50-hour EMA at 181.58. The additional upside filter to watch is at 182.17 (the 100-hour EMA). Further north, the next stop is located near the upper boundary of the Bollinger Band at 183.42. Any follow-through buying above the latter will see a rally to a high of September 15 at 183.90.On the downside, 180.00 acts as an initial support level for the cross. Any decisive break below the latter will see a drop to the lower limit of the Bollinger Band at 179.43, en route to 178.85 (a low of June 16).It’s worth noting that the Relative Strength Index (RSI) is located in bearish territory below 50, highlighting that further downside cannot be ruled out.