GBP/JPY Price Analysis: Retraces after testing the 200-EMA in the 4-hour chart

GBP/JPY registers decent gains of almost 0.20% as the Asian session begins.
The GBP/JPY daily chart depicts the pair as neutral-biased, unable to challenge the 160.00-162.80 area.
Short term, the pair tested the 200-EMA at the H4 chart, in which sellers leaned on, sending the GBP/JPY sliding towards the 162.20s area.

Christian Borjon Valencia FXStreet

GBP/JPY is advancing as the Asian session begins, though it remains trading sideways for the twelve-consecutive trading day, inside the 160.00-162.80 range, at the time of writing. The GBP/JPY exchanges hand at 162.18, above its opening price..

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY remains neutral biased. For the last twelve days, the GBP/JPY has been trading within the 160.00-162.80 area, unable to break above/below the range extremes. It’s worth pointing out that the Relative Strength Index (RSI) is below the 50-midline, almost flat, while the 20-day EMA, at 161.84, is the first support level at the time of writing. On the upside, the GBP/JPY first resistance is the confluence of the 50, 100-EMAs, and a downslope trendline around the 162.80-163.00 area, which the pair had been unable to reach since August 17. On the downside, the GBP/JPY’s first support would be the September 5 daily low at 160.66.

Near term, the GBP/JPY four-hour chart illustrates the cross-currency hitting September’s 2 daily high at 162.52 before retracing some pips below the R1 daily pivot at 162.35. GBP/JPY traders should be aware of the 200-day EMA at around 162.46, a difficult resistance level to overcome for GBP/JPY buyers. Once they clear the latter, that would pave the way towards 163.00, opening the door for further gains.

On the other hand, the GBP/JPY first support would be the confluence of the 20, 50, and 100-EMAs at around 161.65-161,80. Once cleared, the GBP/JPY following support would be the daily pivot at 161.50, followed by the S1 daily pivot at 161.04.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	162.18
Today Daily Change	0.89
Today Daily Change %	0.55
Today daily open	161.39

Trends
Daily SMA20	162.01
Daily SMA50	163.13
Daily SMA100	163
Daily SMA200	159.32

Levels
Previous Daily High	162.5
Previous Daily Low	161.16
Previous Weekly High	162.65
Previous Weekly Low	160.9
Previous Monthly High	163.99
Previous Monthly Low	159.45
Daily Fibonacci 38.2%	161.67
Daily Fibonacci 61.8%	161.98
Daily Pivot Point S1	160.86
Daily Pivot Point S2	160.34
Daily Pivot Point S3	159.52
Daily Pivot Point R1	162.2
Daily Pivot Point R2	163.02
Daily Pivot Point R3	163.54

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.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold sticks to modest losses amid Fed hike bets; holds above $4,100 ahead of US CPI

Gold meets fresh supply, eroding a part of the previous day's strong gains to the $4,150 resistance zone, albeit it holds above the $4,100 mark heading into the European session. Firming US Federal Reserve rate-hike expectations turn out to be a key factor driving flows away from the non-yielding bullion. Meanwhile, the US Dollar struggles to lure buyers amid mixed signals regarding the state of diplomatic talks between the US and Iran, offering some support to the commodity as traders seem hesitant ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.