GBP/JPY Price Analysis: Consolidates below the 50/200-DMAs, death cross around 161.50s
|- The GBP/JPY reached a 4-week high at 161.80, eyeing the confluence of the 50 and 200-day EMAs.
- GBP/JPY Price Analysis: Double bottom looms, but a death-cross looming suggests further downside is expected.
The GBP/JPY extended its gains for two straight days and climbed towards a wall of resistance, with the confluence of the 50 and 200-day Exponential Moving Averages (EMAs) around 161.90-162.20. As the Asian Pacific session begins, the GBP/JPY is trading at 161.61, below its opening price by 0.05%.
GBP/JPY Price Analysis: Technical outlook
After reaching a daily high of 161.80, the GBP/JPY fell short of reclaiming the 50-day EMA at 161.87. even though buyers reclaimed the 161.00 figure and cleared last Friday’s high of 161.2, the GBP/JPY aims upwards, though it would face solid resistance ahead.
The GBP/JPY key resistance levels lie at the 50-day EMA at 161.87. A breach of the latter would expose 162.00, followed by the 200-day EMA at 162.18, followed by the 100-day EMA at 162.87.
As an alternative scenario, if the GBP/JPY reverses Monday’s price action, its first support would be the 161.00 figure. Break below will expose the 20-day EMA at 160.04, followed by the January 23 swing low of 159.00.
GBP/JPY Key Technical Levels
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.