GBP/JPY Price Analysis: Oscillates around 162.00 on risk-off impulse
- GBP/JPY remains positive in the week, up by 0.32%, despite falling in the last couple of days.
- The cross-currency failure to crack the 200-EMA in the 4-hour chart will exacerbate a fall toward 160.00.
The GBP/JPY extended its losses amid worries that a Fed dovish pivot should be put on a drawer, with US economic data giving mixed signals ahead of a crucial US employment report on Friday. Therefore, sentiment shifted sour as US equities finished with substantial losses. At the time of writing, the GBP/JPY is trading at 162.05, testing the confluence of several DMAs.
GBP/JPY Price Forecast
From a daily chart perspective, the GBP/JPY is testing a busy area, with the 20 and 50-day EMAs hoovering around the 162.05-18 region. Notably, the GBP/JPY tumbled below the 100-day EMA, exacerbating a fall toward the daily low of 161.08. Nevertheless, buyers stepping in around the 161.00 figure trimmed some of Thursday’s losses, trying to achieve a daily close above important DMAs.
Near-term, the GBP/JPY four-hour chart portrays the pair as neutral-to-downward biased due to the cross falling below the 20 and the 200-EMAs. At the time of typing, the GBP/JPY is testing the 200-EMA at 162.13, which, once cleared, could open the door for a rally toward the 20-EMA at 163.90.
Nevertheless, the path of least resistance is downwards, so failure to crack the 200-EMA will expose essential support levels. Therefore, the GBP/JPY first support will be the 142.00 mark. A breach of the latter will expose the confluence of the S2 and the 100-EMA at 161.12, followed by the 50-EMA at 160.22.
GBP/JPY Additional 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.
