GBP/JPY Price Analysis: Failure to breach last week high gave way for bears, falls below 157.00


  • The British pound retreats from weekly highs, 120-pips on risk-off market mood.
  • GBP/JPY Technical Outlook: Remains upward biased, but GBP bulls need to reclaim above the 50-hour SMA.

On Thursday, the GBP/JPY falls for the second consecutive day, retreating from weekly highs around 157.70s, down close to 100-pips in the day. At the time of writing, the GBP/JPY exchanges hand at 156.53, losing 0.28%. The market mood is downbeat as portrayed by US equities falling between 0.55% and 1.36%. In the FX market complex, the safe-haven peers like the JPY and the CHF advance, while the US dollar continues to be hit by substantial sell-off across the board.

GBP/JPY Price Forecast: Technical outlook

In the overnight session for North American traders, the cross-currency pair was subdued around the 157.00-40 range. But, as the market mood deteriorated, appetite for safe-haven increased, thus sending the GBP/JPY tumbling towards the daily low at 156.31, near 10-pips short of the S2 daily pivot.

A previous GBP/JPY analysis noted that “the GBP/JPY is upward biased,” but also emphasized that “the high reached on January 5 at 157.76, short of October 20, 2021, at 158.22, exposed the GBP/JPY to downward pressure.

That said, the GBP/JPY retreated 120-pips from the weekly high at 157.72, attributed to risk-aversion meandering in the market.

On the downside, the GBP/JPY next demand area would be the psychological 156.00 figure. A break under that level would expose the January 4 daily low at 155.34. and then the January 3 daily low at 154.90.

To the upside, the first resistance level would be the 200-hour simple moving average (SMA) at 156.81. A decisive break above that level would expose the 100-hour SMA at 157.00, followed by the 50-hour SMA at 157.14. 

GBP/JPY

Overview
Today last price 156.54
Today Daily Change -0.49
Today Daily Change % -0.31
Today daily open 157.03
 
Trends
Daily SMA20 154.6
Daily SMA50 153.05
Daily SMA100 153.05
Daily SMA200 152.85
 
Levels
Previous Daily High 157.71
Previous Daily Low 156.76
Previous Weekly High 157.77
Previous Weekly Low 154.89
Previous Monthly High 156.02
Previous Monthly Low 148.98
Daily Fibonacci 38.2% 157.13
Daily Fibonacci 61.8% 157.35
Daily Pivot Point S1 156.63
Daily Pivot Point S2 156.22
Daily Pivot Point S3 155.68
Daily Pivot Point R1 157.58
Daily Pivot Point R2 158.12
Daily Pivot Point R3 158.52

 

 

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