GBP/JPY Price Analysis: Sees a dead cat bounce as downside risks persist


  • GBP/JPY’s recovery remains capped below 150.00.
  • The cross spots a bear flag on the four-hour chart.
  • The price is recovering from the oversold region.

GBP/JPY has paused its five-day downtrend, although the recovery remains capped by 150.00, leaving the pair almost unchanged on the day.

The bears are looking to fight back control, as the four-hour chart displays a potential bear pennant formation.

A sustained break below the rising trendline support at 149.30 is awaited to confirm the bearish continuation pattern.

Should the downside breakout materialize a drop towards the 148.50 level cannot be ruled.

The Relative Strength Index (RSI) is on a steady from the extreme oversold conditions, looking to dive out to the bearish zone. The momentum indicator currently stands at 26.33, reversing from 24.00 levels.

GBP/JPY four-hour chart

On the flip side, acceptance above 150.08 could call for a meaningful recovery towards the bearish 21-Simple Moving Average (SMA) at 151.10.

The former is the rising trending resistance, which emerges as the bear pennant failure point.

However, the bulls will need to crack the 150.50 psychological barrier in order to challenge the 21-DMA.

GBP/JPY additional levels to watch

GBP/JPY

Overview
Today last price 149.71
Today Daily Change 0.04
Today Daily Change % 0.03
Today daily open 149.68
 
Trends
Daily SMA20 152.98
Daily SMA50 153.93
Daily SMA100 152.47
Daily SMA200 146.54
 
Levels
Previous Daily High 151.64
Previous Daily Low 149.33
Previous Weekly High 153.49
Previous Weekly Low 151.43
Previous Monthly High 155.94
Previous Monthly Low 151.32
Daily Fibonacci 38.2% 150.21
Daily Fibonacci 61.8% 150.76
Daily Pivot Point S1 148.8
Daily Pivot Point S2 147.91
Daily Pivot Point S3 146.49
Daily Pivot Point R1 151.1
Daily Pivot Point R2 152.52
Daily Pivot Point R3 153.41

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stable around 1.1730 ahead of US ISM figures

EUR/USD recovered on a better market mood, but tepid European data prevent it from advancing further. Eyes now on official US ISM figures.

EUR/USD News

GBP/USD rallies to 1.3700 with BOE's tightening hints

GBP/USD jumped to 1.3700 as the Bank of England hinted at a rate hike as the first step towards normalization. MPC voted 9-0 to leave rates on hold but voted 7-2 on reducing QE. Higher rates before trimming facilities are BOE's preferred movement. 

GBP/USD News

XAU/USD edges higher on weaker USD, hawkish Fed/risk-on to cap gains

Gold attracted some dip-buying near the $1,760 region on Thursday and for now, seems to have stalled the post-FOMC retracement slide from the $1,787 area, or weekly tops. 

Gold News

Crypto markets take off without clear goals

Bitcoin price shows a healthy bounce off the 79% Fibonacci retracement level at $40,727, suggesting temporary relief. Ethereum price creeps back above the $3,000 psychological level as it follows in BTC’s footsteps.

Read more

Vinco Ventures Inc keeps falling, as key deadline nears

NASDAQ: BBIG fell for the second straight day on Wednesday and eroded another 2.95%, ending the day at $6.57, still off the three-week troughs of $5.93 reached a session before.

Read more

Forex MAJORS

Cryptocurrencies

Signatures