GBP/JPY Price Analysis: Oscillates below the Kumo, with buyers eyeing 181.60s
- GBP/JPY registers a 0.50% gain, moving from 179.56 to a close of 180.92, with a cautious uptick to 181.05.
- An imminent test of the Ichimoku Cloud bottom at 181.61 could dictate the next directional move towards 181.90 or below 178.03.
- Short-term view leans neutral to slightly bullish, with key resistances set at 181.25, 181.37, and a notable 182.81.
GBP/JPY halted its downtrend on Thursday and registered gains of more than 0.50% in a day that witnessed the pair traveling from around 179.56 towards its daily close of 180.92. At the time of writing, as Friday’s Asin session begins, the cross-currency pair exchanges hands at 181.05, reaching minuscule gains of 0.07%.
The daily chart portrays the pair as neutral to downward biased and about to test the bottom of the Ichimoku Cloud (Kumo) at around 181.61. If that area is breached, the GBP/JPY next stop would be the Kijun-Sen at 181.90 before climbing past 182.00. On the other hand, in the event of a bearish continuation, the pair’s first support would be the October 3 swing low of 178.03. Once cleared, the next support would be the July 28 cycle low at 176.30.
From a short-term perspective, the GBP/JPY is neutral to slightly upward as the pair remains above the Kumo. Additionally, both the Tenkan and Kijun-Sen are in a bullish order, while the Chikou Span is about to cross above the price action. Therefore, the cross-currency pair's first resistance would be the October 4 high at 181.25, followed by the October 3 daily high at 181.37 and the October 2 swing high at 182.81.
GBP/JPY Price Action – Hourly chart
GBP/JPY Technical Levels
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.
