- GBP/JPY accumulates gains on Monday in the early Asian trading hours.
- The cross-currency pair took a breather near 156.00 following a two days sell-off.
- The momentum oscillator holds onto the overbought zone, throwing caution for aggressive bids.
The GBP/JPY cross-currency pair remains upbeat on the fresh trading week. The pair opened lower but managed to catch the upside momentum. At the time of writing, GBP/JPY is trading at 156.47, up 0.21% for the day.
GBP/JPY daily chart
-637707203227100756.png)
On the daily chart, the GBP/JPY cross currency pair seems exhausted near a fresh six-year high made on Wednesday. The double top near 158.22 prompts bears to take some action, which resulted in two days sell-off of more than 300-pips.
The price sustained the 156.00 psychological level and is on the way to climb back to the 157.00 horizontal resistance level. A successful daily close above 157.00 would again prompt the bulls to test the multi-year highs above 158.20.
Alternatively, the Moving Average Convergence and Divergence (MACD) trades in the overbought zone. Any downtick in the MACD along with the break of 156.00 would bring selling opportunities in the pair. In that case,the first downside target appears at the low of October, 15 at 155.42, followed by the 155.00 horizontal support level.
Next, the market participant would aim at the 154.00 horizontal support zone.
GBP/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.