- The British pound advances some 0.18% vs. the Japanese yen.
- GBP/JPY failure to reclaim above 158.22 exposes the pair to downward pressure unless GBP bulls keep the pair above 156.00.
As the end of the first trading week of 2022 approaches, the British pound trimmed some of Thursday’s losses and reclaimed the 157.00 figure. At the time of writing, the GBP/JPY is trading at 157.12 during the North American session.
On Friday, the GBP/JPY was subdued amid the lack of UK and Japanese economic data in the docket. During the overnight session for North American traders, the GBP/JPY was range-bound in the 156.70-157.10 range, trendless and seesawing around the 50-hour simple moving average (SMA).
GBP/JPY Price Forecast: Technical outlook
The GBP/JPY is still bullish biased, though failed short of breaking above the 158.00 figure, once broken in October of 2021, when the GBP/JPY printed the yearly high at 158.22. However, Friday’s recovery leaves some doubts on the table. The cycle high reached on January 5 at 157.76, is lower than the abovementioned, so any strong twist in the market mood would exert downward pressure on the GBP/JPY.
To the upside, the GBP/JPY first resistance level is the January 5 daily high at 157.76. A breach of the latter would expose October 20, 2021, cycle high at 158.22, followed by the 160.00 figure and then May’s 2016 monthly highs around 163.86.
On the flip side, the cross-currency first support is the 157.00 figure. A clear break of the figure opens the door for a challenge of the January 6 daily low at 156.09, followed by the January 3 daily low at 154.89, and then December 28, 2021, pivot low at 154.00.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.