- The GBP/JPY daily chart tests a three-month-old resistance trendline at around 164.70-90.
- The Relative Strength Index (RSI) and the Rate of Change (RoC) shifted bullish, indicating an upward trend for GBP/JPY.
- GBP/JPY Price Analysis: Downside risks remain below 164.00.
The GBP/JPY pair is gaining 0.53% on Thursday and is trading at 164.29 after hitting a daily low of 162.96. The pair's uptrend is attributed to the market's current risk-on sentiment and expectations that central banks will pause hiking rates after the recent banking turmoil in the US and Switzerland.
GBP/JPY Price action
The GBP/JPY daily chart suggests the pair is testing a three-month-old resistance trendline that passes at around 164.70-90, trading at 4-week highs. The Relative Strength Index (RSI) shifted bullish, suggesting the GBP/JPY outlook is upwards. The Rate of Change (RoC) jumped from a neutral stance after the GBP/JPY snapped three days of consecutive losses, erased on Thursday.
If the GBP/JPY continues its uptrend, the next resistance would be the February 27 high at 166.00. A breach of the latter will expose the December 19 daily high at 167.01, followed by the December 12 high at 169.27.
On the other hand, the GBP/JPY first support would be the psychological level at 164.00. Downside risks lie at the next support area at the 20-day Exponential Moving Average (EMA) at 161.87, ahead of testing the 50-day EMA at 161.18.
GBP/JPY Daily chart
GBP/JPY Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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.