GBP/JPY Price Analysis: Downward pressure mounts as a bearish-engulfing pattern looms

GBP/JPY slides over 0.60%, trading around 182.42 after reaching a daily high of 186.05.
Ichimoku Cloud (Kumo) and Chikou Span indicate bearish signals for the pair.
Key support and resistance levels identified amidst the current market dynamics.

Christian Borjon Valencia FXStreet

The GBP/JPY halted its rally and slid more than 0.60% on Thursday after hitting a daily high of 186.05, but high inflation data from the United States (US) spurred a risk-off impulse, as shown by US equities registering losses. At the time of writing, the cross-currency pair exchanges hands at 182.42.

The daily chart portrays the pair as neutral to downward biased, as the GBP/JPY dropped inside the Ichimoku Cloud (Kumo) and the Chikou Span broke below the price action, two bearish signals. To further reinforce the downtrend, the pair must drop below the Senkou-Span B at 182.39, followed by the Kijun-Sen's confluence and the Kumo's bottom at around 181.39. A breach of the latter would expose the Tenkan-Sen at 180.92.

Conversely, if GBP/JPY reclaims the 183.00 are, that could open the door and challenge the psychological 184.00 mark.

GBP/JPY Price Action – Daily chart

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	182.44
Today Daily Change	-1.23
Today Daily Change %	-0.67
Today daily open	183.67

Trends
Daily SMA20	182.07
Daily SMA50	183.36
Daily SMA100	181.49
Daily SMA200	172.63

Levels
Previous Daily High	183.75
Previous Daily Low	182.49
Previous Weekly High	182.98
Previous Weekly Low	178.08
Previous Monthly High	185.78
Previous Monthly Low	180.82
Daily Fibonacci 38.2%	183.27
Daily Fibonacci 61.8%	182.97
Daily Pivot Point S1	182.86
Daily Pivot Point S2	182.04
Daily Pivot Point S3	181.6
Daily Pivot Point R1	184.12
Daily Pivot Point R2	184.56
Daily Pivot Point R3	185.38

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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