GBP/JPY Price Analysis: Bears flex muscles around 163.50
|- GBP/JPY remains sidelined after breaking one-month-old ascending support line.
- Receding bullish bias of MACD adds strength to the downside bias.
- 200-day EMA appears the key support; descending trend line from late October strengths 163.80-90 resistance confluence.
GBP/JPY treads water around 163.50 during early Tuesday, following a daily closing beneath the one-month-old support line, now resistance, the previous day. Not only the trend line breakdown but the receding bullish bias of the MACD also keeps the cross-currency pair’s sellers hopeful.
That said, the 200-day Exponential Moving Average (EMA) level of 162.00 appears the short-term key support for the GBP/JPY pair.
However, multiple supports near 161.60, 161.00 and the 160.00 psychological magnet could challenge the bears afterward.
Should the quote remains bearish past 160.00, a two-month-old ascending support line near 159.00 will be crucial to watch for further directions.
On the flip side, the support-turned-resistance line from early February joins a downward-sloping trend line resistance from October 31, 2022, to highlight 163.80-90 as the key upside hurdle. Also acting as the additional filter to the north is the 164.00 round figure.
In a case where the GBP/JPY remains firmer past 164.00, February’s high of near 166.00 could act as the last defense of the pair bears, a break of which could quickly propel the prices towards late 2022 peak surrounding 169.30 before highlighting the 170.00 round figure.
Overall, GBP/JPY is likely to remain on the bear’s radar even if the 200-day EMA probes sellers.
GBP/JPY: Daily chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.