GBP/JPY Price Analysis: A bearish engulfing pattern looms after diving below 192.00

'Bearish engulfing' on GBP/JPY suggests growing bearish momentum.
Break below Tenkan-Sen may lead to more declines, with key supports eyed.
Resistance at 192.00, recent highs key for reversals; market sentiment watched.

Christian Borjon Valencia FXStreet

The GBP/JPY retreats late on Wednesday during the North American session and is down 0.27% as the market sentiment shifts sour. Speculation that the Federal Reserve wouldn’t cut rates as expected spurred risk aversion, with traders seeking safety moving to the Japanese Yen, the Greenback, and the Swissie. The cross exchanges hands at 191.82.

GBP/JPY Price Analysis: Technical outlook

The picture shows the formation of a ‘bearish engulfing’ candle pattern, which suggests that bears are gathering momentum. However, to confirm that the GBP/JPY has peaked at around 192.94 as of today, sellers must push prices below the Tenkan-Sen level at 191.49. Once cleared, the next stop would be the Senkou Span A at 191.12, ahead of falling to the Kijun Sen at 190.74.

On the flip side, the GBP/JPY first resistance would be the 192.00 figure, followed by April’s 10 high at 192.95. The next resistance would be the current year-to-date (YTD) high at 193.53.

GBP/JPY Price Action – Daily Chart

GBP/JPY

Overview
Today last price	191.84
Today Daily Change	-0.58
Today Daily Change %	-0.30
Today daily open	192.42

Trends
Daily SMA20	191.13
Daily SMA50	189.89
Daily SMA100	187.13
Daily SMA200	185.16

Levels
Previous Daily High	192.86
Previous Daily Low	192.07
Previous Weekly High	192.25
Previous Weekly Low	190.04
Previous Monthly High	193.54
Previous Monthly Low	187.96
Daily Fibonacci 38.2%	192.56
Daily Fibonacci 61.8%	192.37
Daily Pivot Point S1	192.04
Daily Pivot Point S2	191.67
Daily Pivot Point S3	191.26
Daily Pivot Point R1	192.83
Daily Pivot Point R2	193.23
Daily Pivot Point R3	193.61

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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