- GBP/JPY steps back from weekly resistance line to trim intraday gains.
- Downbeat Momentum line hints at corrective pullback towards monthly horizontal line.
- Bears need to conquer the 150.00 threhold for conviction.
GBP/JPY struggles to keep the rebound from the monthly bottom around 150.70, up 0.09% intraday, ahead of Wednesday’s London open.
The cross-currency pair dropped to the lowest since July 30 the previous day before bouncing off 61.8% Fibonacci retracement of late July upswing.
The pair’s rebound gains extra support from the downbeat Momentum line amid the pair’s one-week-old south-run.
However, a clear upside break of a short-term resistance line, near 150.85, becomes necessary for the GBP/JPY buyers to sneak in. Following that, a horizontal area around 151.30-35, comprising multiple levels marked since July 19, will challenge the quote’s further advances.
Alternatively, a clear downtrend below the 61.8% Fibonacci retracement level of 150.37 won’t be enough for the GBP/JPY bears to keep the reins as the 150.00 round figure may test the further declines.
In a case where the GBP/JPY remains weak past 150.00, July’s bottom surrounding 148.45 will be in focus.
GBP/JPY: Four-hour chart
Trend: Recover moves expected
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
EUR/USD consolidates gains below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery below 1.0700 in the European session on Thursday. The US Dollar holds its corrective decline amid improving market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD clings to moderate gains above 1.2450 on US Dollar weakness
GBP/USD is clinging to recovery gains above 1.2450 in European trading on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold price shines amid fears of fresh escalation in Middle East tensions
Gold price rebounds to $2,380 in Thursday’s European session after posting losses on Wednesday. The precious metal holds gains amid fears that Middle East tensions could worsen and spread beyond Gaza if Israel responds brutally to Iran.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.