• GBP/JPY extends downside below 172 (resistance broken on 8th Jan) to currently trade at 169.35.
  
  
• Attempts of recovery on Wednesday were rejected at 171.29 asserting more downside.
  
  
• The pair hit fresh yearly low at 168.83 before paring some losses, downside has little support till 168 levels.
  
  
• While 5-DMA on the upside has been capping gains in the pair and is seen as strong resistance 171.30 (Jan 13 highs).
  
  
• RSI on daily and weekly charts shows weakness, deeply entrenched in oversold territory, while MACD also point south.
  
  

Recommendation: We would go short around 170 levels, Sl: 171.30, TP1: 168, TP2: 166