GBP/JPY Price Analysis: Respects double-top neckline, meanders around 152.60s

The GBP/JPY trims last week’s losses, though stills below a double-top neckline, as downside risks remain.
A risk-on market mood, dented appetite for the safe-haven JPY.
GBP/JPY Technical Outlook: The retest of a double-top in the daily chart opens the door for renewed selling pressure.

Christian Borjon Valencia FXStreet

The British pound recovers some ground vs. the Japanese yen on a slight improvement on market sentiment, but the rally stalled at the neckline of a double-top chart pattern, with a target of 148.00. At the time of writing, the GBP/JPY is trading at 152.67 during the North American session.

US equities reflect the improvement in market mood, rallying between 2% and 3.58%, as Ukraine shows is ready to resume talks with Russia. On Tuesday, in an interview with ABC, Ukrainian President Volodymyr Zelensky commented that he is prepared for dialog and reiterated that Ukraine lost its interest to join NATO.

GBP/JPY overnight rallied once the Asian Pacific session began, on the news that Ukraine was no longer interested in joining NATO, jumping 50-pips near the 152.00 mark ahead of the European session. Once European traders joined their offices, the GBP/JPY printed its second leg-up and recorded the daily high at 152.72.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY is downward biased, and Wednesday’s rally offered JPY bulls a better entry price, in the case of having missed the March 4, 250-pip fall from 154.20s. The GBP/JPY neckline lies at 152.94 and would be a problematic resistance level to overcome for GBP bulls due to the increased selling pressure linked to the double-top.

That said, the GBP/JPY first support would be March 8 daily low at 150.97. Breach of the latter would expose last year’s crucial support levels, lead by December 20 low at 149.60, followed by the December 3 low at 148.97, and the double-top target at 148.00.

GBP/JPY

Overview
Today last price	152.67
Today Daily Change	1.22
Today Daily Change %	0.81
Today daily open	151.49

Trends
Daily SMA20	155.06
Daily SMA50	155.43
Daily SMA100	154.25
Daily SMA200	153.39

Levels
Previous Daily High	152.02
Previous Daily Low	150.99
Previous Weekly High	155.23
Previous Weekly Low	151.47
Previous Monthly High	158.07
Previous Monthly Low	153.37
Daily Fibonacci 38.2%	151.62
Daily Fibonacci 61.8%	151.38
Daily Pivot Point S1	150.98
Daily Pivot Point S2	150.46
Daily Pivot Point S3	149.94
Daily Pivot Point R1	152.01
Daily Pivot Point R2	152.53
Daily Pivot Point R3	153.04

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.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.