GBP/JPY Price Analysis: Rises on risk-on as buyers eye 188.00
- GBP/JPY climbs 0.48% to 187.44, driven by positive market sentiment and Wall Street's peaks.
- Upward momentum seen, eyeing resistance at 188.00, with goals towards January 19 high of 188.93.
- Downside risks: possible pullback to Tenkan-Sen (187.06), with key supports at 187.00, then 185.44.
The GBP/JPY climbed late in the North American session, extending its gains courtesy of upbeat market sentiment as portrayed by Wall Street reaching new all-time highs. At the time of writing, the cross-pair is trading at 187.44, which is up 0.48%.
The daily chart suggests the pair is upward biased after GBP/JPY price action on February 1 formed a ‘hammer,’ exacerbating today’s rally to a new two-day high of 187.73. if buyers lift the exchange rate past the 188.00 figure, that could pave the way toward the January 19 high at 188.93 before challenging 189.00
Conversely, if GBP/JPY slumps below the Tenkan-Sen at 187.06, that could pave the way to challenge the 187.00 figure. Once those two levels are cleared, the next stop would be the Senkou Span A at 185.44, followed by the February 1 low of 185.22. Further downside is seen at 185.00.
GBP/JPY Price Action – Daily Chart
GBP/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
