GBP/JPY Price Analysis: Lingers near Ichimoku-Cloud base, as bears eye 181.00
- GBP/JPY struggles to surpass the previous weekly high due to geopolitical tensions and a shift to safe-haven assets.
- Support lies at the intersection of the Kumo's bottom and the Kijun-Sen at 181.20.
- Resistance is found at 183.00, with the next hurdle at the October 12 high of 183.81.
The GBP/JPY consolidates inside the Ichimoku Cloud (Kumo), registering modest losses of 0.25% after failing to crack the previous weekly high of 182.80 amid a deteriorated risk appetite. Geopolitical reasons and flight to safe-haven peers weighed on the Pound Sterling (GBP), extending its losses for two consecutive days against the Japanese Yen (JPY), exchanging hands at around 182.03, slightly below the Tenkan-Sen line.
The daily chart portrays the pair as consolidated after diving towards the October 3 swing low of 178.03, with prices climbing to the 183.80 area before settling at current exchange rates. The cross-pair trades sideways, though slightly bearish tilted, as the GBP/JPY hovers near the bottom of the Kumo, which, once broken, could exacerbate an acceleration of the downtrend.
The first support is seen at the confluence of the bottom of the Kumo and the Kijun-Sen at 181.20. If that level is taken, the GBP/JPY would dive past the next support at 181.00, with sellers eyeing the October 3 daily low of 178.03 before setting their sights on the July 28 swing low of 176.30.
On the other hand, if GBP/JPY climbs above 183.00, that would expose the October 12 high at 183.81 before buyers challenge the top of the Kumo at around 184.20/35.
GBP/JPY Price Action – Daily chart
GBP/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
