GBP/JPY Price Analysis: Range-bound, consolidates around the top of the 158.00-160.30 area

The GBP/JPY remains positive in the week, up some 0.28%.
Sentiment remains upbeat, as Asian stocks are poised to open higher.
GBP/JPY Price Forecast: In the short term is downward biased and would aim towards 157.99; otherwise, expect upward pressure and a test near 161.00.

Christian Borjon Valencia FXStreet

The GBP/JPY recovered some ground on Wednesday as the New York session waned and the Asian session took over, courtesy of an upbeat sentiment after the US Federal Reserve released its May monetary policy meeting minutes. At 160.16, the GBP/JPY records minimal gains of 0.08%.

A risk-on market mood keeps global equities bid. In the FX space, safe-haven peers remain on the defensive as risk-sensitive currencies rise. At the same time, Asian equity futures are poised for higher open after the Fed’s minutes message coincided with Fed official’s expressions after the May meeting.

On Wednesday, the GBP/JPY began trading near the daily lows, around 159.00. However, during the European session dipped towards the 158.50 area, reaching a new daily low. Nevertheless, the GBP/JPY encountered bids around the area and rallied above 160.00, as risk sentiment prevailed positively.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY daily chart depicts the pair neutral-downward biased. At the time of writing, the cross-currency is trading above April’s 27 159.63 swing low, aiming to extend the rally that started on May 19 and capped on May 24. A GBP/JPY daily close above 160.00 would open the door toward the May 17 daily high at 161.85.

Meanwhile, the GBP/JPY is downward biased in the short term. The 4-hour chart depicts an imbalance zone which was mitigated in the last two candles, well within the blueish painted rectangle. The upward impulse would find solid resistance at the May 25 daily high at 160.30. If the previously-mentioned level gives way, a rally towards fresh highs is on the cards.

GBP/JPY failure at 160.30 would open the door for further losses. The GBP/JPY first support would be 160.00. A breach of the latter would expose the 158.39 swing low, followed by the May 24 daily low at 157.99.

GBP/JPY

Overview
Today last price	160.16
Today Daily Change	1.20
Today Daily Change %	0.75
Today daily open	158.97

Trends
Daily SMA20	160.56
Daily SMA50	161.36
Daily SMA100	158.27
Daily SMA200	155.46

Levels
Previous Daily High	161.03
Previous Daily Low	158
Previous Weekly High	161.85
Previous Weekly Low	157.44
Previous Monthly High	168.44
Previous Monthly Low	159.64
Daily Fibonacci 38.2%	159.16
Daily Fibonacci 61.8%	159.87
Daily Pivot Point S1	157.64
Daily Pivot Point S2	156.3
Daily Pivot Point S3	154.6
Daily Pivot Point R1	160.67
Daily Pivot Point R2	162.36
Daily Pivot Point R3	163.7

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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