GBP/JPY Price Analysis: Pares first weekly gain in three below 185.00 within 13-day-old triangle
- GBP/JPY lacks clear directions by sticking to mild gains as it snaps two-week downtrend.
- Bearish MACD signals suggest further consolidation of weekly gains.
- Convergence of 200-SMA, bottom line of the two-week-long symmetrical triangle appears a tough nut to crack for bears.
GBP/JPY treads water around 184.60 during the early hours of Thursday’s Asian session, after snapping a two-day winning streak the previous day. Even so, the cross-currency pair remains on the way to posting the first weekly gain in three as softer yields propel the Japanese Yen (JPY) despite hawkish Bank of Japan (BoJ) concerns, as well as fears of policy pivot at the Bank of England (BoE).
That said, the quote remains steady within a two-week-old symmetrical triangle but bearish MACD signals suggest further consolidation of the weekly gains, which in turn highlights the 184.00 as an immediate support to watch for the pair sellers.
However, the GBP/JPY bears should remain cautious unless they witness a clear downside break of the 183.70–60 support confluence comprising the aforementioned triangle’s bottom line and the 200-SMA.
Following that, a quick fall towards the late August swing low of around 183.35 can’t be ruled out while the early August peak of near 183.20 can prod the GBP/JPY bears afterward.
On the contrary, the 185.00 round figure guards the immediate recovery of the cross-currency pair ahead of the triangle’s top line, close to 185.65 at the latest.
Following that, a horizontal area comprising multiple levels marked since mid-August, around 186.30-35 will precede the latest peak, which is also the yearly high, of near 186.70 to challenge the GBP/JPY bulls.
GBP/JPY: Four-hour chart
Trend: Limited downside expected
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.
