• The GBP/JPY stays positive in the week, gaining 0.42%.
  • A fragile sentiment triggered by recession fears might send the pair tumbling and erase the pound’s weekly gains.
  • GBP/JPY Price Analysis: Upward biased in the medium term, but the short term is consolidating and might fall if sellers step in and could dive towards 164.00.

The GBP/JPY barely advances during the Asian session, up 0.02%. However, on Thursday, the GBP/JPY plunged from around 167.00 to 164.65, though it staged a comeback and lost only 160 pips. At 165.41, the GBP/JPY, albeit above the 20-day exponential moving average (EMA), remains under selling pressure amidst a mixed market sentiment.

The reflection of the above-mentioned is that Asian equity futures are rising while US indices are falling. Fears of a US and global recession increased after Thursday’s worldwide S&P Global PMIs, although in expansionary territory, dipped. Investors sounded the alarms and flew towards safe-haven assets, like the Japanese yen in the FX market.

Read also: Forex Today: Run to safety only beginning

GBP/JPY Price Analysis: Technical outlook

Daily chart

From a technical perspective, the GBP/JPY is upward biased, as the exchange rate failed to break below the 20-EMA. Also, the Relative Strength Index (RSI) dwells in bullish territory, meaning there’s some buying pressure on the pair, but solid resistance lies ahead.

4-hour chart

In the near-term, GBP/JPY price action shows consolidation lying ahead; though successive series of a Lower high (LH) and a Lowe low (LL), and with the pair meandering around the 50 and 100-4H-EMAs, a breach of them would open the door for a possible fall towards 164.47.

Therefore, the GBP/JPY first support would be 100-4h-EMA at 164.95. A breach of the latter exposes the 50-EMA at 164.64, followed by the swing low mentioned above at 164.47. If the pair clears the latter, the GBP/JPY might tumble to the 200-4H-EMA at 162.38.

GBP/JPY

Overview
Today last price 165.41
Today Daily Change -1.78
Today Daily Change % -1.06
Today daily open 167.18
 
Trends
Daily SMA20 164.24
Daily SMA50 162.82
Daily SMA100 160.04
Daily SMA200 156.8
 
Levels
Previous Daily High 167.86
Previous Daily Low 165.77
Previous Weekly High 166.22
Previous Weekly Low 160
Previous Monthly High 163.91
Previous Monthly Low 155.6
Daily Fibonacci 38.2% 166.57
Daily Fibonacci 61.8% 167.06
Daily Pivot Point S1 166.02
Daily Pivot Point S2 164.85
Daily Pivot Point S3 163.93
Daily Pivot Point R1 168.11
Daily Pivot Point R2 169.03
Daily Pivot Point R3 170.2

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures