GBP/JPY Price Analysis: Consolidation underway, still vulnerable
- GBP/JPY is moving in a range between 149.80 and 150.60.
- The pound still shows some vulnerability to the downside, needs to recover above 150.60.
The GBP/JPY traded below 150.00, but it rose back above, holding firm to the current consolidation range, after the sharp slide from a multi-year high above 153.00 to 149.60.
The bias still favors the downside the area around 150.00 is becoming a strong support. A close below would clear the way for a test of the recent low at 149.60, and then to 149.45. Below the next support stands at 149.10.
A recovery above 150.60, the 20 simple moving average in four hours chart, would alleviate the bearish pressure and would open the doors for a test of 151.05/10 (horizontal resistance / previous uptrend line). Above 151.25 (20-day SMA), the outlook for the pound would improve.
GBP/JPY 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
