GBP/JPY Price Analysis: Bulls and bears battle around the 161.70 area as a doji emerges

GBP/JPY seesaws around the 161.70 area, failing to reach the head-and-shoulders 161.00 target.
The GBP/JPY 1-hour chart portrays that the head-and-shoulders is still in play, so bears are pilling around further GBP/JPY rallies.

Christian Borjon Valencia FXStreet

The GBP/JPY is trading almost flat during the Asian Pacific session after Monday’s price action formed a doji, meaning that neither buyers nor sellers are in control. On Tuesday, the AUD/JPY is trading at 161.76, up by 0.03%.

GBP/JPY Price Analysis: Technical outlook

The daily chart is neutral-to-downward biased, with the exchange rate below the 20, 50, and 100-day EMAs. GBP/JPY traders should be aware that price action formed a successive series of lower highs and lows for four consecutive days, sliding steadily. However, the average daily range (ADR) shrank to 110-130 pips a day, meaning that the pair is about to see high volatility levels, which could send the pair towards the 200-day EMA at 158.93.

The GBP/JPY on the hourly scale had not fulfilled the head-and-shoulders target of 161.00, falling short on Monday, when it reached the 161.15 daily low. Since then, the cross bounced off towards the 161.70 area, where the 20-hour EMA lies, in confluence with the daily pivot point. Therefore, a break above will expose the GBP/JPY to higher prices, which is not likely to happen due to the Relative Strength Index (RSI) being in negative territory with a 47.22 reading, aiming lower.

Therefore, the GBP/JPY path of least resistance is downwards, and its first support would be the August 22 low at 161.15. The break below will expose the head-and-shoulders target at 161.00, followed by the S2 daily pivot at 160.43, followed by the August 15 daily low at 160.08.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	161.76
Today Daily Change	-0.24
Today Daily Change %	-0.15
Today daily open	162.02

Trends
Daily SMA20	162.72
Daily SMA50	163.76
Daily SMA100	163.11
Daily SMA200	158.91

Levels
Previous Daily High	162.84
Previous Daily Low	161.64
Previous Weekly High	163.57
Previous Weekly Low	160.09
Previous Monthly High	166.34
Previous Monthly Low	160.4
Daily Fibonacci 38.2%	162.1
Daily Fibonacci 61.8%	162.38
Daily Pivot Point S1	161.49
Daily Pivot Point S2	160.96
Daily Pivot Point S3	160.29
Daily Pivot Point R1	162.7
Daily Pivot Point R2	163.37
Daily Pivot Point R3	163.9

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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