GBP/JPY Price Analysis: Jumps to fresh high since December 2015 as BoJ’s Ueda tames inflation woes

GBP/JPY rises for the fourth consecutive day to refresh multi-month high after BoJ Governor Ueda’s speech.
BoJ’s Ueda defends easy-money policy by citing hopes of easing inflation.
RSI conditions, multiple upside hurdles around mid-180.00s prod buyers.
Bears have a long and bumpy road to take entry into the bar.

Anil Panchal FXStreet

GBP/JPY bulls cheer dovish comments from Bank of Japan (BoJ) Governor Kazuo Ueda by leaping to a fresh high since December 2015, up 0.55% intraday around 180.40 during early Friday morning in London.

That said, the BoJ kept the short-term interest rate target at -0.1% while directing 10-year Japanese Government Bond (JGB) yields with the band of +/-0.50% earlier in the day by expecting softer inflation pressure to arrive. To defend the view, BoJ’s Ueda recently said, “More time will be needed to meet the central bank’s 2% inflation target.”

Also read: BoJ’s Ueda: More time needed to meet BoJ’s 2% inflation target

Although the BoJ-inspired rally has fewer fundamental hurdles, the technical details suggest a pullback in the GBP/JPY price amid the overbought RSI (14) line, as well as the quote’s battle with the horizontal area comprising levels marked in September-October 2015, near 180.40-80.

Even if the quote rises past 180.80, the 181.00 round figure and 78.6% Fibonacci Expansion (FE) of its moves from September 2020 to December 2022, near 186.30 and the 190.00 round figure will challenge the GBP/JPY bulls.

Meanwhile, the GBP/JPY pair’s failure to provide a weekly closing beyond 180.80 can trigger a pullback toward the 180.00 round figure and then to the 61.8% Fibonacci retracement level of around 179.50.

Above all, the GBP/JPY buyers remain hopeful unless witnessing the weekly close below the previous resistance line from April 2022, near 176.20 by the press time.

GBP/JPY: Weekly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	180.38
Today Daily Change	0.99
Today Daily Change %	0.55%
Today daily open	179.39

Trends
Daily SMA20	174.13
Daily SMA50	170.67
Daily SMA100	166.2
Daily SMA200	165.04

Levels
Previous Daily High	179.4
Previous Daily Low	177.26
Previous Weekly High	175.54
Previous Weekly Low	172.67
Previous Monthly High	174.28
Previous Monthly Low	167.84
Daily Fibonacci 38.2%	178.59
Daily Fibonacci 61.8%	178.08
Daily Pivot Point S1	177.97
Daily Pivot Point S2	176.55
Daily Pivot Point S3	175.83
Daily Pivot Point R1	180.11
Daily Pivot Point R2	180.82
Daily Pivot Point R3	182.24

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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