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GBP/JPY Price Analysis: Plunged and fulfilled double top’s target though bounced off the lows towards 154.50

  • The British pound drops 1.12% in the week vs. the yen, blamed on Russia’s invasion.
  • On Thursday, the Average Daily Range (ADR) of the GBP/JPY was 250 pips.
  • GBP/JPY Technical Outlook: Persist upward-biased post reclaiming the 100-DMA.

The British pound is set to end the day in the red as the North American session winds down, following a busy session in the financial markets, driven by headlines of the Russian invasion of Ukraine, which has taken a toll on risk market mood. However, following US President Biden’s new tranche of sanctions imposed on Russia and people linked to Vladimir Putin’s regime, witnessed a U-turn on US stocks, spurred by a risk-on mood. That said, the GBP/JPY is trading at 154,47.

On Thursday, during the Asian Pac session, the GBP/JPY was subdued in the 155.43-88 area. But as soon as the headlines of Russian President Putin said that a special military operation was underway in Ukraine, the risk-sensitive GBP plummeted, reaching a daily low at 153.36, a 250-ípip move.

GBP/JPY Price Forecast: Technical outlook

In Wednesday’s article, I mentioned that the “GBP/JPY daily chart depicts a double-top, following the rally from January 24 low at 152.90, to February 10 high at 158.06.” Additionally noted that the double-top target was 153.80. All in all, the GBP/JPY double-top target was achieved, probably helped by anxiety and panic in the financial markets, which boosted appetite for safe-haven peers.

Wednesday article here: GBP/JPY Price Analysis: Double top in the making, targets 153.80

So far, as the Asian Pac session begins, the GBP/JPY licks its wounds and prepares for the last trading day of the week. The GBP/JPY finalized the North American session above the 100-day moving average (DMA) at 154.38 after piercing the 200-DMA at 153.38.

That said, the cross-currency pair remains upward biased, though it would depend on risk appetite. The GBP/JPY first resistance level would be February 3 daily low at 155.04. A decisive break would expose the 50-DMA at 155.32, followed by the 156.00 figure.

GBP/JPY

Overview
Today last price154.53
Today Daily Change-1.23
Today Daily Change %-0.79
Today daily open155.76
 
Trends
Daily SMA20155.96
Daily SMA50155.25
Daily SMA100154.39
Daily SMA200153.45
 
Levels
Previous Daily High156.78
Previous Daily Low155.61
Previous Weekly High157.29
Previous Weekly Low155.31
Previous Monthly High157.77
Previous Monthly Low152.91
Daily Fibonacci 38.2%156.06
Daily Fibonacci 61.8%156.33
Daily Pivot Point S1155.31
Daily Pivot Point S2154.87
Daily Pivot Point S3154.14
Daily Pivot Point R1156.49
Daily Pivot Point R2157.22
Daily Pivot Point R3157.66

Author

Christian Borjon Valencia

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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