GBP/JPY Price Analysis: Pares some of its weekly losses, fluctuates around 156.60
|- GBP/JPY recovered some ground on Wednesday and trimmed most of its weekly losses.
- However, if the GBP/JPY fails to reclaim 157.00, that would pave the way for sellers, and the pair could drop towards the 38.2% Fibonacci retracement at 154.67.
- A break above 157.00 might open the door for a rally towards the 61.8% Fibonacci at 158.40.
On Wednesday, the GBP/JPY finished the day with solid gains of 1%, as the Bank of England intervention bolstered UK bonds and alleviated the markets. However, as the Asian Pacific session takes over, the GBP/JPY is trading at 156.59, down 0.21%.
GBP/JPY Price Analysis: Technical outlook
The GBP/JPY daily chart portrays the pair as downward biases, as mentioned yesterday, “once it cleared the 200-EMA.” GBP/JPY’s Wednesday price action registered a daily high at 157.09, above the 50% Fibonacci retracement, drawn from the high/low of September 22 and 26, respectively, paving the way for a move towards the 61.8% retracement at 158.40. If the GBP/JPY breaks 158.00, then a move to the latter is on the cards, followed by the figure at 160.00, ahead of the 200-day EMA at 160-33
Otherwise, the GBP/JPY might be headed downwards, aligned with its current bias. Therefore, the GBP/JPY’s first support will be the 50% Fibonacci retracement at 156.53. Once cleared, the next support would be the 38.2% Fibonacci at 154.67, followed by the September 27 daily low at 154.07. A breach of the latter might send the GBP/JPY towards the January 24 daily low of 152.90.
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.