- 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.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.