- The GBP/JPY reached a 4-week high at 161.80, eyeing the confluence of the 50 and 200-day EMAs.
- GBP/JPY Price Analysis: Double bottom looms, but a death-cross looming suggests further downside is expected.
The GBP/JPY extended its gains for two straight days and climbed towards a wall of resistance, with the confluence of the 50 and 200-day Exponential Moving Averages (EMAs) around 161.90-162.20. As the Asian Pacific session begins, the GBP/JPY is trading at 161.61, below its opening price by 0.05%.
GBP/JPY Price Analysis: Technical outlook
After reaching a daily high of 161.80, the GBP/JPY fell short of reclaiming the 50-day EMA at 161.87. even though buyers reclaimed the 161.00 figure and cleared last Friday’s high of 161.2, the GBP/JPY aims upwards, though it would face solid resistance ahead.
The GBP/JPY key resistance levels lie at the 50-day EMA at 161.87. A breach of the latter would expose 162.00, followed by the 200-day EMA at 162.18, followed by the 100-day EMA at 162.87.
As an alternative scenario, if the GBP/JPY reverses Monday’s price action, its first support would be the 161.00 figure. Break below will expose the 20-day EMA at 160.04, followed by the January 23 swing low of 159.00.
GBP/JPY Key Technical Levels
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