Share:
  • GBP/JPY reverses October-November rally.

  • Oversold conditions detected after sharp drop.

  • Resistance at 181.45-182.00.

 

GBPJPY crashed by 3.5% to 178.51 on Thursday before closing the day at 181.45, marking its worst daily session of the year. The pair faced heavy selling in the wake of renewed signals the Bank of Japan could exit its existing super accommodative monetary policy.

The bears are currently aiming to push the price back below the 180.00 mark, but the RSI and the stochastic oscillators have already plunged into oversold waters, suggesting selling pressures could fade soon.

The 23.6% Fibonacci retracement level of the 2023 uptrend is slightly lower at 180.80 and could help the pair to crawl back above the nearby resistance of 181.45 and the 182.00 round level. Running higher, some consolidation could develop between the 183.30 barrier and the 50-day simple moving average (SMA) at 184.20. If the recovery continues, the bulls will attempt to climb back above the broken support trendline at 185.30 and perhaps cross above the 20-day SMA at 186.16 too.

Alternatively, a step below 180.80 could initially stabilize within the 179.60-179.80 region, where the ascending line from April 2022 intersects the short-term restrictive lines from August. A defeat there could open the way towards the 200-day SMA at 177.77. Beneath that, sellers could head for the 38.2% Fibonacci of 175.90.

In a nutshell, GBPJPY could heal some of its wounds following its latest freefall. A clear move above 181.45-182.00 could strengthen upside forces.

GBPJPY

Share: Feed news

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

AUD/USD deteriorates further and retargets the 2024 low

AUD/USD deteriorates further and retargets the 2024 low

Further weakness saw AUD/USD retreat to new two-week lows in the 0.6490/85 band against the backdrop of the stronger Dollar and the absence of a positive surprise from the RBA’s inflation gauges.

AUD/USD News

EUR/USD grinds back to flat as investors hunker down for wait to US PCE inflation print

EUR/USD grinds back to flat as investors hunker down for wait to US PCE inflation print

EUR/USD sagged early Friday after European sentiment indicators came in below expectations, and a lopsided print in US Gross Domestic Product (GDP) figures kept the pair in familiar territory midweek.

EUR/USD News

Gold extends its consolidation around $2,030

Gold extends its consolidation around $2,030

Gold holds above $2,030 in the second half of the day on Wednesday. The benchmark 10-year US Treasury bond yield corrects lower after rising above 4.3% on Tuesday, allowing XAU/USD to cling to modest daily gains ahead of Thursday's PCE inflation data.

Gold News

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin (BTC) price is trading with a bullish bias, recording milestones this week as institutional money floods the crypto markets. Galaxy CEO Mike Novogratz says BTC is now in price discovery phase now the bulk of US wealth has easy access.

Read more

Moment of truth in FX PCE tomorrow

Moment of truth in FX PCE tomorrow

During today's TradeGATEHub Live Trading session, Coach Dale discusses the significance of closing above inter-day spikes in the DXY. He also provides an update on the Rising Wedge pattern in the Dow, as well as his critical threshold for 10-year yields. 

Read more

Majors

Cryptocurrencies

Signatures