GBP/JPY Price Analysis: Drops on safe-haven flows, back below 161.00

GBP/JPY extends its losses, from around 163.00 to 160.60 in the last four days.
Risk aversion in the FX space underpins safe-haven peers.
GBP/JPY: To resume its downward bias below 160.34; otherwise, a test of 162.07 is on the cards.

Christian Borjon Valencia FXStreet

The GBP/JPY stumbles and refreshes two-week lows, eyeing a break below the July 6 low at 160.38, which could exacerbate a move towards the August 2 low at 159.44, ahead of the 200-day EMA at 158.65. At the time of writing, the GBP/JPY is trading at 160.69, down 0.75, due to a risk-off impulse in the FX space, to the detriment of risk-sensitive currencies, namely the GBP, AUD, and NZD.

GBP/JPY Price Analysis: Technical outlook

The longer-term of the GBP/JPY is neutral-to-downward biased as shown by the daily chart. Succesive series of lower highs/lows, alongside the Relative Strength Index (RSI) aiming downwards and below its 7-day RSI SMA, exacerbated the cross fall in the last four days. Also, the 20-day EMA is about to cross under the 100-day EMAat 162.97, which would exert additional selling pressure on the pair. That could send the GBP/JPY towards the 200-day EMA at 158.65.

Therefore, the GBP/JPY’s first support would be the August 15 low at 160.34. Break below will expose the July 6 low at 160.38, followed by the August 2 low at 159.44, followed by the abovementioned 200-day EMA.

On the flip side, the GBP/JPY's first resistance would be the August 15 high at 162.07. Once cleared, the next resistance will be August 12, high at 162.79, followed by the 163.00 figure.

GBP/JPY Daily chart

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	160.69
Today Daily Change	-1.22
Today Daily Change %	-0.75
Today daily open	161.98

Trends
Daily SMA20	163.44
Daily SMA50	164.24
Daily SMA100	163.05
Daily SMA200	158.68

Levels
Previous Daily High	162.8
Previous Daily Low	161.81
Previous Weekly High	163.85
Previous Weekly Low	161.27
Previous Monthly High	166.34
Previous Monthly Low	160.4
Daily Fibonacci 38.2%	162.19
Daily Fibonacci 61.8%	162.42
Daily Pivot Point S1	161.59
Daily Pivot Point S2	161.21
Daily Pivot Point S3	160.6
Daily Pivot Point R1	162.59
Daily Pivot Point R2	163.19
Daily Pivot Point R3	163.58

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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