GBP/JPY Price Analysis: Downward pressure to aggravate below lows near 151.70
- GBP/JPY off the day’s high in the Asian session.
- Bears challenge 23.6% Fibonacci retracement level.
- Neutral MACD echoes the wait-and-watch approach before placing any aggressive bets.
The GBP/JPY cross maintained a subdued tone in the Asian session. The cross quickly moved higher after making an intraday low near 151.70 to touch the highs of 152.10 before retracing below 151.95.
At the time of writing, the GBP/JPY cross is trading at 151.93, up 0.09% on the day.
GBP/JPY hourly chart
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On the hourly chart, the cross has been accumulating gains in the trading range of 151.90-151.95. The formation of the Doji candle near the 23.6% Fibonacci retracement level signifies that prices lack any directional strength.
The Moving Average Convergence Divergence (MACD) indicator is placed above the midline, with a bearish crossover. That suggests upcoming downward momentum in prices, where they will first locate Wednesday’s low at 151.76 followed by the 151.50 horizontal support. It would also mark the breach of the 50% Fibonacci retracement, meaning reversal of the previous uptrend, and this could drag the prices further lower toward Tuesday’s low at 151 (May 4).
Moving higher, prices would meet an interim hurdle at the 152.10 horizontal resistance and then Wednesday’s high in the vicinity of 152.25. Bulls will then target early April highs near the 153.30 area.
GBP/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
