GBP/JPY Price Analysis: Unable to reclaim 161.00 to extend its losses towards the 100-DMA
|- The GBP/JPY is trading positive in the week by 0.27%.
- The Bank of Japan (BoJ) Governor Kuroda lifted the Japanese yen as he discussed an exit strategy to an accommodative policy stance.
- GBP/JPY Price Forecast: Failure at 161.00 might send the pair tumbling towards 158.20s.
The GBP/JPY barely edges higher in the day after seesawing in a wide 180 pip range and is set to finish Thursday’s session in the green, up just 0.04%. At the time of writing, the GBP/JPY is trading at 160.15.
US equities are recording gains as Wall Street is about to close, reflecting a risk-on mood. The GBP/JPY shifted gears, turned positive, and consolidated above the 160.00 mark, tested throughout the week. It’s worth noting that the Japanese yen got a lift from the Bank of Japan Kuroda, who talked about the exit strategy from an accommodative monetary stance to a restrictive one.
On Thursday, the GBP/JPY opened just above the 160.00 figure and bounced towards the daily high around 160.80. However, a raft of selling pressure dragged the pair towards the daily low at around 159.01, reached during the European session, followed by a recovery above the 160.00, where the cross-currency settled around.
GBP/JPY Price Forecast: Technical outlook
The GBP/JPY daily chart depicts the pair as upward biased. Nevertheless, failure to reclaim 161.00 would leave the cross-currency vulnerable to additional selling pressure. The RSI reinforces the previously-mentioned, with an almost horizontal slope and its reading in bearish territory.
That said, the GBP/JPY first support would be the 159.00 mark. Break below would expose the 100-DMA at 158.27, followed by the 200-DMA at 155.49.
Key Technical Levels
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