• 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

 

 

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