GBP/JPY Price Analysis: Rebounds above 170.00 on JPY weakness, as BoE’s decision loom

GBP/JPY rebounds to 170.65, fueled by Yen’s weakness and the upcoming BoE decision.
GBP/JPY targets 171.00, eyeing a year-to-date high of 172.33 if momentum holds.

Christian Borjon Valencia FXStreet

The GBP/JPY recovered some ground after falling to weekly lows of 169.85, climbing sharply above the 170.00 figure, as overall Japanese Yen (JPY) weakness, as the main reason, alongside the Bank of England (BoE) monetary policy decision lurking. The GBP/JPY is trading at 170.65, above its opening price by 0.14%.

GBP/JPY Price Analysis

The GBP/JPY appears to have bounced from its weekly lows below the 170.00 figure but remains shy of testing the weekly high of 171.07. Given that a golden cross was witnessed in early April, the GBP/JPY bias is upward. Oscillators like the Relative Strength Index (RSI) indicator show buyers are gathering momentum. The 3-day Rate of Change (RoC) portrays its largest jump to the upside, suggesting that the GBP/JPY could re-test the year-to-date (YTD) high at 172.33.

But firstly, the GBP/JPY must reclaim the 171.00 mark. A breach of the latter would expose the 172.00 figure, followed by the YTD high.

However, further downside is warranted if GBP/JPY drops below 170.00. GBP/JPY’s first support would be the December 13 swing high-turned-support at 169.27. Once cleared, the next demand area would be the confluence of the 20-day EMA and the April 19 high, at around 168.20/167.97, respectively, immediately followed by the December 20 daily high at 167.01.

GBP/JPY Daily Chart

GBP/JPY

Overview
Today last price	170.68
Today Daily Change	0.22
Today Daily Change %	0.13
Today daily open	170.46

Trends
Daily SMA20	167.94
Daily SMA50	164.81
Daily SMA100	162.43
Daily SMA200	163.56

Levels
Previous Daily High	171.07
Previous Daily Low	170.18
Previous Weekly High	172.34
Previous Weekly Low	168.06
Previous Monthly High	171.18
Previous Monthly Low	162.78
Daily Fibonacci 38.2%	170.73
Daily Fibonacci 61.8%	170.52
Daily Pivot Point S1	170.07
Daily Pivot Point S2	169.68
Daily Pivot Point S3	169.18
Daily Pivot Point R1	170.96
Daily Pivot Point R2	171.46
Daily Pivot Point R3	171.85

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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