- 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.
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
|Today last price||156.6|
|Today Daily Change||1.20|
|Today Daily Change %||0.77|
|Today daily open||155.4|
|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|
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