- The GBP/JPY stays positive in the week, gaining 0.42%.
- A fragile sentiment triggered by recession fears might send the pair tumbling and erase the pound’s weekly gains.
- GBP/JPY Price Analysis: Upward biased in the medium term, but the short term is consolidating and might fall if sellers step in and could dive towards 164.00.
The GBP/JPY barely advances during the Asian session, up 0.02%. However, on Thursday, the GBP/JPY plunged from around 167.00 to 164.65, though it staged a comeback and lost only 160 pips. At 165.41, the GBP/JPY, albeit above the 20-day exponential moving average (EMA), remains under selling pressure amidst a mixed market sentiment.
The reflection of the above-mentioned is that Asian equity futures are rising while US indices are falling. Fears of a US and global recession increased after Thursday’s worldwide S&P Global PMIs, although in expansionary territory, dipped. Investors sounded the alarms and flew towards safe-haven assets, like the Japanese yen in the FX market.
GBP/JPY Price Analysis: Technical outlook
From a technical perspective, the GBP/JPY is upward biased, as the exchange rate failed to break below the 20-EMA. Also, the Relative Strength Index (RSI) dwells in bullish territory, meaning there’s some buying pressure on the pair, but solid resistance lies ahead.
In the near-term, GBP/JPY price action shows consolidation lying ahead; though successive series of a Lower high (LH) and a Lowe low (LL), and with the pair meandering around the 50 and 100-4H-EMAs, a breach of them would open the door for a possible fall towards 164.47.
Therefore, the GBP/JPY first support would be 100-4h-EMA at 164.95. A breach of the latter exposes the 50-EMA at 164.64, followed by the swing low mentioned above at 164.47. If the pair clears the latter, the GBP/JPY might tumble to the 200-4H-EMA at 162.38.
|Today last price||165.41|
|Today Daily Change||-1.78|
|Today Daily Change %||-1.06|
|Today daily open||167.18|
|Previous Daily High||167.86|
|Previous Daily Low||165.77|
|Previous Weekly High||166.22|
|Previous Weekly Low||160|
|Previous Monthly High||163.91|
|Previous Monthly Low||155.6|
|Daily Fibonacci 38.2%||166.57|
|Daily Fibonacci 61.8%||167.06|
|Daily Pivot Point S1||166.02|
|Daily Pivot Point S2||164.85|
|Daily Pivot Point S3||163.93|
|Daily Pivot Point R1||168.11|
|Daily Pivot Point R2||169.03|
|Daily Pivot Point R3||170.2|