GBP/JPY Price Analysis: Oscillates on top of Kumo, above 183.00
- GBP/JPY achieves losses of 0.54%, clinging to the top of the Ichimoku Cloud at 183.20s.
- Upbeat market sentiment and fears of Japanese authorities intervening could cap the potential rally.
- If GBP/JPY dives inside the Kumo, the first support is at 183.00, followed by Tenkan-Sen at 182.52.
The Pound Sterling (GBP) losses some ground against the Japanese Yen (JPY) on Wednesday but clings to the top of the Ichimoku Cloud (Kumo) at around 183.20s, though it achieves losses of 0.54%.
An upbeat market sentiment has capped the GBP/JPY fall inside the Kumo, which could open the door for further losses. If the cross stands above that level, that could open the door to reclaiming 184.00, but fears of Japanese authorities intervening in the Forex markets could cap the rally and trigger another leg down.
On the flip side, if GBP/JPY dives inside the Kumo, the first support would be 183.00. Additional losses lie below that level, firstly the Tenkan-Sen at 182.52, followed by the 182.00 mark. Once cleared, the next support would emerge at the bottom of the Kumo at 181.55/60, ahead of reaching the Kijun-Sen at 181.16.
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.
