GBP/JPY Price Analysis: Refreshes weekly high above 182.00
- GBP/JPY rises swiftly above 182.00 amid uncertainty over timeframe of BoJ’s exit to loose policy.
- The UK Composite and Services PMI are seen remaining unchanged.
- Advancing 20-EMA indicates strength in the bullish bias.
The GBP/JPY pair prints a fresh weekly high slightly above 182.00 as investors capitalize on risk-on mood. The cross advanced on Thursday amid hopes that the Bank of England (BoE) will begin reducing interest rates later than other Group of Seven economies.
On the economic data front, investors await the United Kingdom’s S&P Global Composite and Services PMI for December, which will be published at 09:30 GMT. As per the estimates, the Composite and Services PMI will remain unchanged at 51.7 and 52.7 respectively.
The Japanese Yen struggles for a firm footing as investors are uncertain about the time-period when the Bank of Japan (BoJ) will exit from the ultra-loose monetary policy stance. BoJ Governor Kazuo Ueda needs to confirm that wage growth should be sufficient to keep the underlying inflation steadily above 2%.
GBP/JPY rallies to near the resistance zone, which is placed in a range of 182.27-182.40 on an hourly scale. The upside bias seems upbeat as the 20-period Exponential Moving Average (EMA) is sloping higher. Further roadblock is placed near December 19 high at 184.20.
The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that the upside momentum is intact.
A decisive break above the aforementioned resistance zone will expose the asset to December 13 high at 183.16, followed by December 19 high at 184.20.
Fresh downside would appear if the cross will drop below December 14 low at 178.35. This would drag the asset towards July 27 low at 177.40 and July 28 low at 176.32.
GBP/JPY hourly chart
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
