GBP/JPY Price Analysis: Back-to-back doji means indecision lurking the pair
- GBP/JPY marginally advances almost 0.05% on Wednesday’s Asian session.
- The GBP/JPY is seesawing in the 161.00-162.30 area, unable to break beyond the range.
The GBP/JPY is almost flat as the Asian session begins, still below the 20-day EMA for the third consecutive trading day, whilst price action continues to record successive series of lower highs and lows. At the time of writing, the GBP/JPY Is trading at 161.86.
Sentiment has improved, as shown by Asian equities set to open higher. GBP/JPY Tuesday’s price action illustrates the pair seesawing between 161.00-162-30, while all the hourly moving averages (HMAs) meandering around the exchange rate are almost flat.
GBP/JPY Price Analysis: Technical outlook
The GBP/JPY daily chart illustrates the pair as neutral biased. Helped by the GBP/USD recovery, the British pound edged higher, after recording a fresh five-daily low at 160.80, bounced off to close the session around 161.77. That said the GBP/JPY printed back-to-back doji’s, meaning indecision lurks in the pair.
In the near term, the GBP/JPY hourly chart illustrates the pair fulfilling the head-and-shoulders chart pattern target. Once the target was achieved, the GBP/JPY rallied sharply, testing a downslope trendline, drawn from the August 17 high around 163.56, which confluences with the 200-hour EMA at 161.96.
A breach of the latter will expose the 162.00 figure, followed by the August 22 high at 162.30, followed by the R1 pivot at 162.47. On the flip side, the GBP/JPY first support would be the daily pivot at 161.62. Break below will expose the figure at 161.00, immediately followed by the S1 pivot at 160.94.
GBP/JPY Key Technical Level
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.
