GBP/JPY Price Analysis: Failure to breach last week high gave way for bears, falls below 157.00
|- The British pound retreats from weekly highs, 120-pips on risk-off market mood.
- GBP/JPY Technical Outlook: Remains upward biased, but GBP bulls need to reclaim above the 50-hour SMA.
On Thursday, the GBP/JPY falls for the second consecutive day, retreating from weekly highs around 157.70s, down close to 100-pips in the day. At the time of writing, the GBP/JPY exchanges hand at 156.53, losing 0.28%. The market mood is downbeat as portrayed by US equities falling between 0.55% and 1.36%. In the FX market complex, the safe-haven peers like the JPY and the CHF advance, while the US dollar continues to be hit by substantial sell-off across the board.
GBP/JPY Price Forecast: Technical outlook
In the overnight session for North American traders, the cross-currency pair was subdued around the 157.00-40 range. But, as the market mood deteriorated, appetite for safe-haven increased, thus sending the GBP/JPY tumbling towards the daily low at 156.31, near 10-pips short of the S2 daily pivot.
A previous GBP/JPY analysis noted that “the GBP/JPY is upward biased,” but also emphasized that “the high reached on January 5 at 157.76, short of October 20, 2021, at 158.22, exposed the GBP/JPY to downward pressure.”
That said, the GBP/JPY retreated 120-pips from the weekly high at 157.72, attributed to risk-aversion meandering in the market.
On the downside, the GBP/JPY next demand area would be the psychological 156.00 figure. A break under that level would expose the January 4 daily low at 155.34. and then the January 3 daily low at 154.90.
To the upside, the first resistance level would be the 200-hour simple moving average (SMA) at 156.81. A decisive break above that level would expose the 100-hour SMA at 157.00, followed by the 50-hour SMA at 157.14.
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.