GBP/JPY Price Analysis: Failure to break 170.00 will exacerbate a fall towards 165.00

GBP/JPY is range-bound, lacking clear direction due to the recent Bank of Japan (BoJ) interventions in the FX markets.
From a daily chart perspective, the GBP/JPY is neutral-to-upwards biased, though it will face solid resistance around 170.00.
Short term, the GBP/JPY is neutral biased, though as the RSI shifts bearish, it could exert downward pressure on the GBP.

Christian Borjon Valencia FXStreet

The GBP/JPY meanders around 168.36 as the Asian session begins, following a huge volatile Monday trading session, with the GBP/JPY registering a daily high and low of 169.78/165.41, respectively, as traders speculate of another BoJ intervention in the FX markets.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY daily chart illustrates the pair as neutral to upward biased, consolidated near the year-to-date highs around 165.00-170.00. The price action shows large price swings in the last three days due to the BoJ stepping into the markets, delineating a solid resistance area at around 170.00. Even though the day's lows were capped around 165.00, the GBP/JPY might continue to trade around 168.00-170.00, opening the door for further gains. On the flip side, if the GBP/JPY slides below 168.00, a fall toward 165.00 is on the cards.

The GBP/JPY one-hour time frame depicts the pair as range-bound, forming a top in the 168.00-170.00 area, which GBP buyers had been unable to crack, on its way towards new YTD highs. Worth noting that the Relative Strength Index (RSI) turned bearish, which could exacerbate a move downwards, exposing key support areas.

Hence the GBP/JPY first support would be the 200-Exponential Moving Average (EMA) around 167.50, which, once cleared, would send the GBP/JPY tumbling towards the S1 daily pivot at 165.62, followed by the October 21 daily low at 164.87, ahead of the S2 pivot level at 163.33.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	168.36
Today Daily Change	1.18
Today Daily Change %	0.71
Today daily open	167.15

Trends
Daily SMA20	163.22
Daily SMA50	162.93
Daily SMA100	163.58
Daily SMA200	161.12

Levels
Previous Daily High	169.58
Previous Daily Low	164.95
Previous Weekly High	170.1
Previous Weekly Low	164.95
Previous Monthly High	167.22
Previous Monthly Low	148.8
Daily Fibonacci 38.2%	166.72
Daily Fibonacci 61.8%	167.81
Daily Pivot Point S1	164.87
Daily Pivot Point S2	162.59
Daily Pivot Point S3	160.24
Daily Pivot Point R1	169.5
Daily Pivot Point R2	171.86
Daily Pivot Point R3	174.14

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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