GBP/JPY Price Analysis: Pares some of its weekly losses, fluctuates around 156.60

GBP/JPY recovered some ground on Wednesday and trimmed most of its weekly losses.
However, if the GBP/JPY fails to reclaim 157.00, that would pave the way for sellers, and the pair could drop towards the 38.2% Fibonacci retracement at 154.67.
A break above 157.00 might open the door for a rally towards the 61.8% Fibonacci at 158.40.

Christian Borjon Valencia FXStreet

On Wednesday, the GBP/JPY finished the day with solid gains of 1%, as the Bank of England intervention bolstered UK bonds and alleviated the markets. However, as the Asian Pacific session takes over, the GBP/JPY is trading at 156.59, down 0.21%.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY daily chart portrays the pair as downward biases, as mentioned yesterday, “once it cleared the 200-EMA.” GBP/JPY’s Wednesday price action registered a daily high at 157.09, above the 50% Fibonacci retracement, drawn from the high/low of September 22 and 26, respectively, paving the way for a move towards the 61.8% retracement at 158.40. If the GBP/JPY breaks 158.00, then a move to the latter is on the cards, followed by the figure at 160.00, ahead of the 200-day EMA at 160-33

Otherwise, the GBP/JPY might be headed downwards, aligned with its current bias. Therefore, the GBP/JPY’s first support will be the 50% Fibonacci retracement at 156.53. Once cleared, the next support would be the 38.2% Fibonacci at 154.67, followed by the September 27 daily low at 154.07. A breach of the latter might send the GBP/JPY towards the January 24 daily low of 152.90.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	156.6
Today Daily Change	1.20
Today Daily Change %	0.77
Today daily open	155.4

Trends
Daily SMA20	162.47
Daily SMA50	162.6
Daily SMA100	162.9
Daily SMA200	160.35

Levels
Previous Daily High	156.37
Previous Daily Low	154.16
Previous Weekly High	164.45
Previous Weekly Low	155.45
Previous Monthly High	163.99
Previous Monthly Low	159.45
Daily Fibonacci 38.2%	155.53
Daily Fibonacci 61.8%	155
Daily Pivot Point S1	154.24
Daily Pivot Point S2	153.09
Daily Pivot Point S3	152.03
Daily Pivot Point R1	156.46
Daily Pivot Point R2	157.52
Daily Pivot Point R3	158.68

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.

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