GBP/JPY Price Analysis: Buyers stumble at solid resistance at 166.00, as sellers regain control

The British pound lost ground vs. the Japanese yen, but it’s positive in the week, up almost 0.80%.
Investors’ mood improved towards the Wall Street close, but Asian equity futures are stumbling.
GBP/JPY Price Analysis: Neutral-to-downward biased, though upside risks remain.

Christian Borjon Valencia FXStreet

The GBP/JPY is barely up almost 0.03%, following Wednesday’s session, where the cross-currency tumbled from weekly highs around 166.25 to hit a daily low at 165.13 before settling around in the mid 165-166.00 range. At the time of writing, the GBP/JPY is trading at 165.58 as the Asian Pacific session begins.

GBP/JPY Price Analysis: Technical outlook

On Wednesday, the GBP/JPY began trading around 165.70s before marching firmly towards the daily highs around 166.22. Nevertheless, the pair fell on UK inflation data, sending the GBP/JPY towards its daily lows around 165.13, breaking below the 20, and 50 hour-EMA’s on its way south. Therefore, the GBP/JPY is neutral biased in the hourly chart, though it might consolidate around the 165.27-88 range before breaking in either way.

GBP/JPY 1-hour chart

The GBP/JPY 1-hour chart depicts the pair as range-bound. However, GBP/JPY traders should notice that price action broke below a nine-day upslope trendline around 165.60, which was later tested. However, GBP/JPY buyers could not hold the exchange rate above it, and meaning sellers outweighed buyers.

Therefore, the GBP/JPY is mild-tilted downwards. If that scenario plays out, the GBP/JPY first support would be 165.27. Break below will send the pair diving to the confluence of the 100-hour EMA and the S1 pivot point around 165.00, followed by the 200-hour EMA at 164.25. On the other hand, the GBP/JPY first resistance would be the intersection of the daily pivot and the 20-hour EMA around 165.69. A breach of the latter will expose the top of the range around 165.88, followed by the weekly high at 166.25.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	165.58
Today Daily Change	-0.19
Today Daily Change %	-0.11
Today daily open	165.8

Trends
Daily SMA20	164.5
Daily SMA50	163.19
Daily SMA100	161.65
Daily SMA200	158.04

Levels
Previous Daily High	165.98
Previous Daily Low	164.72
Previous Weekly High	165.2
Previous Weekly Low	161.84
Previous Monthly High	168.74
Previous Monthly Low	160
Daily Fibonacci 38.2%	165.5
Daily Fibonacci 61.8%	165.21
Daily Pivot Point S1	165.02
Daily Pivot Point S2	164.24
Daily Pivot Point S3	163.76
Daily Pivot Point R1	166.29
Daily Pivot Point R2	166.77
Daily Pivot Point R3	167.55

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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