- GBP/JPY reverses previous day’s losses, bounces off three-week-old support line.
- Weekly ascending channel, 78.6% Fibonacci retracement guards immediate upside.
- Bearish need cautious until witnessing clear downside break of 200-SMA.
- Firmer RSI, sustained trading above key SMA favor bulls.
GBP/JPY rises 0.25% intraday around 155.86, grinding higher at the two-month top during Tuesday’s European morning.
The cross-currency pair snapped a three-day uptrend the previous before bouncing off an ascending support line from December 16. The recovery moves also take clues from firmer RSI, not overbought.
It should be noted, however, that the quote still holds the previous downside break of a one-week-long ascending trend channel, which triggered Monday’s declines.
Hence, a clear upside break of the stated channel’s resistance line, around 156.00 by the press time, becomes necessary for the GBP/JPY buyers to keep reins.
Following that, 78.6% Fibonacci retracement (Fibo.) level of October-December 2021 downside, near 156.25, may offer an intermediate halt during the quote’s rally towards the last year's top of 158.22.
Alternatively, the stated support line, previous resistance, can challenge the intraday GBP/JPY sellers around 155.00. Also adding to the downside filter is the 61.8% Fibo. level near 154.70.
In a case where GBP/JPY drops below 154.70, the early November’s swing low near 152.40 may act as an intermediate halt before directing bears to the 200-SMA level of 152.10.
GBP/JPY: Four-hour chart
Additional important levels
|Today last price||155.86|
|Today Daily Change||0.38|
|Today Daily Change %||0.24%|
|Today daily open||155.48|
|Previous Daily High||155.93|
|Previous Daily Low||154.89|
|Previous Weekly High||156.02|
|Previous Weekly Low||153.31|
|Previous Monthly High||156.02|
|Previous Monthly Low||148.98|
|Daily Fibonacci 38.2%||155.29|
|Daily Fibonacci 61.8%||155.53|
|Daily Pivot Point S1||154.94|
|Daily Pivot Point S2||154.4|
|Daily Pivot Point S3||153.9|
|Daily Pivot Point R1||155.97|
|Daily Pivot Point R2||156.47|
|Daily Pivot Point R3||157.01|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.