GBP/JPY Price Analysis: Advances towards the 100-DMA, as bulls target the 50-DMA at 154.50
- On Monday, the GBP/JPY seesawed between the 200 and 100-DMA but ended in a bullish tone.
- The equity markets finished mixed, while the CHF rose almost 1% in the FX space.
- GBP/JPY Technical Outlook: Neutral-bullish, but downside risks remain due to the closeness of the 200-DM.
The British pound finished Monday’s session in the green following a gap down attributed to geopolitical concerns linked to Ukraine – Russian war. On the weekend, West countries like the US, UK, and Canada, alongside the Eurozone, imposed “rigid” sanctions on Russian Government officials and oligarchs linked to Russian President Putin’s regime. That said, the GBP/JPY gapped down from February 25 close at 154.84 to 153.29, nearby the 200-day moving average (DMA) amid a risk-off market mood, though achieve to recover from daily lows. At the time of writing, the GBP/JPY is trading at 154.29.
Wall Street’s, reflected the actual downbear market mood, as shown by US equities finished in the red, except for the Nasdaq Composite, rising 0.34%, finishing at 14,237.81. In the FX space, the main winners were the CHF, followed by the NZD and the JPY, while the EUR was the laggard of the day.
GBP/JPY Price Forecast: Technical outlook
In the overnight for North American traders, the GBP/JPY resumed its upward move, after gapping down, aimed towards the 155.00 mark, but failed short 2-pips. Then, the pair dropped to the 154.00 area and stabilized around 154.30.
The GBP/JPY is neutral biased. Monday’s price action seesawed between the 200-DMA on the bottom and the 100-DMA on the top but ultimately closed seven-pips short of the latter.
Therefore, the GBP/JPY is neutral-upward biased though downside risks remain, to the closeness of the 200-DMA. The cross-currency pair’s first resistance would be the 100-DMA at 154.38. Breach of the latter would expose 155.00, followed by the 50-DMA at 155.48.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
