- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD buyers stay directed toward 0.6800 after China's inflation data
AUD/USD extends gains toward 0.6800 in the Asian session on Monday, recovering from a three-week low touched on Friday. The pair holds higher ground, undeterred by the softer-than-expected China's inflation data amid a pause in the US Dollar recovery and risk reset.
USD/JPY clings to recovery gains below 143.00
USD/JPY is holding recovery gains below 143.00, positively kicking off the new week. Friday's late US Dollar rebound and Japan's Q2 GDP downward revision support the pair, though the divergent BoJ-Fed policy expectations should cap its upside. All eyes remain on US CPI data due later this week.
Gold is down but not out whilst 21-day SMA holds
Gold price is trading on the front foot just shy of the $2,500 threshold early Monday, consolidating Friday’s late rebound. Gold price sticks to its familiar range, as traders brace for the US Consumer Price Index data due later this week to confirm the size of the Federal Reserve interest rate cut next week.
Bitcoin risks further decline below $54,000
Bitcoin hovers around the $54,000 support level; a firm close below would suggest a decline ahead while Ethereum and Ripple prices approach their key resistance levels; rejection would suggest continuing the downward trend.
Week ahead: ECB poised to cut again, US CPI to get final say on size of Fed cut
ECB is expected to ease again, but will it be another ‘hawkish cut’? US CPI report will be the last inflation update before September FOMC. UK monthly data flurry begins with employment and GDP numbers.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.