- 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.
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.
Recommended content
Editors’ Picks
EUR/USD extends slide to fresh two-week lows near 1.0400

Following a short-lasting recovery attempt in the early European session, EUR/USD has met fresh bearish pressure and declined toward 1.0400. The dollar continues to gather strength amid risk aversion as investors await the PCE inflation data from the US.
GBP/USD stays below 1.2150 ahead of US data

GBP/USD is having a tough time gaining traction and trades below 1.2150 on Thursday as the dollar holds its ground in the risk-averse market environment. The US Bureau of Economic Analysis' PCE inflation data will be looked upon for fresh impetus.
Gold stays on the back foot, retreats toward $1,810

Gold has lost its traction and declined toward $1,810 following a consolidation phase in the early European session. Although the benchmark 10-year US Treasury bond yield is down more than 1%, the broad-based dollar strength weighs on XAU/USD.
Breaking: Bitcoin price drops below $19,000

Bitcoin price has breached a critical area of support over the past few hours, dipping below $19,000. Transaction history shows that a large number of addresses acquired BTC above $20,000.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!