Technical analysis – GBP/JPY at three-month high

GBPJPY marks new higher high; remains restricted.
Resistance near 198.50; support seen around 196.00.

Christina Parthenidou XM

GBPJPY charted a three-month high of 198.42 at the top of a bullish channel, increasing speculation that a new bearish wave could soon start, especially after the close below the 61.8% Fibonacci retracement at 197.35.

Technical indicators are showing mixed signals: the stochastic oscillator is poised for a decline, while the RSI and MACD remain in bullish territory. The 20-day SMA crossing above the 50- and 200-day SMAs suggests potential trend continuation, but a bearish rising wedge is currently creating uncertainty.

If the price breaks above 198.50, the next resistance could occur between 201.50 and 202.00. Continued buying may then push the pair to 203.70 and then towards the 205.40-206.00 zone.

Alternatively, a slide below the 196.00 number could find initial support around the 194.00 area, where the 20- and 200-day SMAs as well as the 50% Fibonacci level are positioned. Further losses could retest the 50-day SMA and the 38.2% Fibonacci of 190.70, a break of which could cause a dramatic downfall towards the channel’s lower band currently seen at 187.20.

In short, GBPJPY is in a cautious area, with decisive movements above 198.50 or below 196.00 likely guiding future price action.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.