GBP/JPY Price Analysis: Portrays bullish consolidation above 181.00
- GBP/JPY remains indecisive within the key trading range, fades previous week’s recovery.
- Convergence of 100-SMA, one-month-old horizontal region guards immediate upside.
- Nine-week-old rising support line, 200-SMA prods bears; monthly low acts as additional downside filter.
- Oscillators suggest further grinding toward the south but sellers seem cautious of late.
GBP/JPY seesaws around 181.30-40 as it struggles to defend the week-start losses, as well as fade the previous week’s rebound, amid early Tuesday morning in Europe. In doing so, the cross-currency pair portrays the market’s indecision ahead of the top-tier UK data.
That said, the GBP/JPY pair’s recovery from an upward-sloping trend line from May 11 failed to cross the one-month-long horizontal area comprising the 100-SMA.
The quote’s failure to cross the key resistance region surrounding 182.15-40 joins the impending bear cross on the MACD and the steady RSI (14) line to lure the GBP/JPY sellers in marking another attempt to break the multi-day-old support line, close to 180.30 at the latest.
However, the 180.00 psychological magnet and the 200-SMA level of around 179.90 can test the bears before giving them control. Also acting as a downside filter is the monthly low of near 179.45.
Meanwhile, the GBP/JPY pair’s upside clearance of the 182.40 hurdle will target the yearly top of around 184.00 resistance.
Following that, July 2015 low near 185.00 may test the bulls ahead of directing them to the 190.00 threshold.
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.
