GBP/JPY Price Analysis: Rising wedge challenges recovery around mid-166.00s

GBP/JPY prints mild gains within bearish chart formation.
Downbeat MACD signals, clear break of three-week-old previous support line keeps sellers hopeful.
100, 200 SMAs can prod bears before directing them to theoretical target of 162.30.
Bulls need to cross the 167.00 hurdle to retake control.

Anil Panchal FXStreet

GBP/JPY remains mildly bid near 166.40 heading into Monday’s London open. In doing so, the cross-currency pair struggles to defend the four-day uptrend inside a short-term rising wedge bearish chart formation.

That said, the bearish MACD signals and the quote’s downside break of an upward-sloping support line from late March, now immediate resistance around 166.80, adds strength to the downside bias.

However, a clear break of the stated wedge’s lower line, close to 165.80 at the latest, becomes necessary for the GBP/JPY bear’s conviction.

Even so, the 100-SMA and the 200-SMA, respectively near 164.00 and 163.00, can challenge the cross-currency pair’s likely fall past 166.80 towards the theoretical target of around 162.30.

It’s worth noting that the monthly low of around 162.80 also acts as an extra filter towards the south.

Meanwhile, GBP/JPY recovery needs to cross the previous support line, close to 166.80, to convince intraday buyers.

Following that, the stated wedge’s top line and the recent high, close to 167.00, may test the upside before defying the bearish chart formation.

In that case, a run-up towards the late 2022 peak of around 169.30 and then towards the 170.00 round figure can’t be ruled out.

Overall, GBP/JPY buyers appear to run out of steam ahead of the key data week for the UK.

GBP/JPY: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	166.32
Today Daily Change	0.25
Today Daily Change %	0.15%
Today daily open	166.07

Trends
Daily SMA20	163.53
Daily SMA50	162.46
Daily SMA100	162.17
Daily SMA200	163.21

Levels
Previous Daily High	166.23
Previous Daily Low	165.42
Previous Weekly High	166.85
Previous Weekly Low	163.81
Previous Monthly High	165.47
Previous Monthly Low	158.27
Daily Fibonacci 38.2%	165.92
Daily Fibonacci 61.8%	165.73
Daily Pivot Point S1	165.58
Daily Pivot Point S2	165.09
Daily Pivot Point S3	164.77
Daily Pivot Point R1	166.4
Daily Pivot Point R2	166.72
Daily Pivot Point R3	167.21

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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