GBP/JPY Price Analysis: Breaches Tenkan-Sen and plummets below 187.00
- GBP/JPY falls over 0.60%, impacted by cautious sentiment before Fed policy decision.
- Drop below Tenkan-Sen (187.45) suggests more decline; watch supports at 186.00, 185.64.
- Recovery hinges on surpassing 187.00; resistance at 187.45, 188.00, and January 23 high of 188.91.
The GBP/JPY plunged sharply during the North American session, down by more than 0.60% as market participants shifted risk-averse ahead of the US Federal Reserve’s (Fed) monetary policy decision. That, alongside the Bank of England (BoE) meeting on Thursday, keeps the Pound Sterling (GBP) downward pressured while the Japanese Yen (JPY) advances. At the time of writing, the cross exchanges hands at 186.15 after hitting a high of 187.59.
The pair is neutral biased but tilted to the downside after diving below the Tenkan-Sen at 187.45, That exacerbated the GBP/JPY fall below 187.00, which opened the door for further downside. The next support surfaces at 186.00, followed by the Senkou Span A at 185.64. Further downside is seen at 185.00.
On the other hand, if buyers step in, they must reclaim 187.00. Once that level is cleared, up next would be the Tenkan-Sen at 187.45, ahead of challenging 188.00, before testing fresh highs at 188.91, the January 23 high.
GBP/JPY Price Action – Daily Chart
GBP/JPY Technical Levels
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.
