GBP/JPY Price Analyisis: Failure at 164.50, exposes the pair to selling pressure

The GBP/JPY reaches a fresh two-day high at around 163.62.
Investors’ optimism augmented their appetite for risk-sensitive currencies like the pound.
GBP/JPY Price Analysis: Unless buyers reclaim 164.60, a re-test towards the 100-day EMA near 160.90 is on the cards.

Christian Borjon Valencia FXStreet

The GBP/JPY erases Wednesday’s losses and soars on Thursday amidst a risk-on impulse that augmented appetite for riskier assets, meaning safe-haven peers sustaining losses. At 163.49, the GBP/JPY is trading at fresh two-day highs, up almost 1%.

Wall Street is set to finish Thursday’s session in the green, up between 1.14% and 2.22%. Recession fears that the US Federal Reserve would be unable to curb inflation without tipping the US economy into contractionary territory faded. Meanwhile, Fed officials reiterated that a 75 bps rate hike in July is the base case scenario while adding that the US economy is solid.

On Thursday, the GBP/JPY’s price action illustrates the pair opening around 162.00, followed by a dip towards the middle of the 161.00-162.00 area, and then rallying more than 150 pips, reaching a daily high at around 163.62. However, as the New York session ended, the cross-currency pair settled at around 163.52.

GBP/JPY Daily chart

The daily chart shows that the GBP/JPY is upward biased, though oscillators at negative territory might open the door for a reversal move. The RSI at 48 is still below the 50-midline; unless it breaches the latter, a retracement towards the 100-day EMA around 160.87 is on the cards. If buyers want to resume the uptrend, they must reclaim above the 20-day EMA at 164.56.

Otherwise, the GBP/JPY first support would be the 163.00 mark. Break below will expose the 50-day EMA at 162.76, followed by a fall towards the 100-day EMA at 160.87.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	163.49
Today Daily Change	1.35
Today Daily Change %	0.83
Today daily open	162.16

Trends
Daily SMA20	164.87
Daily SMA50	162.83
Daily SMA100	160.87
Daily SMA200	157.5

Levels
Previous Daily High	162.58
Previous Daily Low	160.4
Previous Weekly High	166.94
Previous Weekly Low	161.58
Previous Monthly High	168.74
Previous Monthly Low	160
Daily Fibonacci 38.2%	161.23
Daily Fibonacci 61.8%	161.75
Daily Pivot Point S1	160.84
Daily Pivot Point S2	159.52
Daily Pivot Point S3	158.65
Daily Pivot Point R1	163.03
Daily Pivot Point R2	163.9
Daily Pivot Point R3	165.22

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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