GBP/JPY Price Analysis: Shifted downwards in the near-term unless bulls reclaim 164.00
- The GBP/JPY finished the week with decent losses of 0.68%.
- July’s worldwide reported S&P Global PMIs resurfaced recession concerns in the financial markets, shifting sentiment sour.
- GBP/JPY Price Analysis: In the short-term downward biased unless buyers reclaim 164.00; otherwise, losses would extend towards 161.80.
The GBP/JPY slides for the third straight day creep below the 50-day EMA at around 163.51, spurred by a dismal market mood, blamed on US companies missing earnings, alongside weak worldwide S&P Global PMIs reigniting recessions worries amongst investors. In the meantime, next week, traders brace for the July US Federal Reserve Open Market Committee (FOMC) monetary policy decision. At the time of writing, the GBP/JPY is trading at 163.22.
GBP/JPY Price Analysis: Technical outlook
The GBP/JPY daily chart depicts the pair as upward biased, despite the ongoing retracement from weekly highs near 166.00, towards the weekly lows at around 163.22. GBP/JPY traders should be aware that the 20 and 50-day EMAs, previous support levels, turned into resistance once the pair nosedived 150 pips. However, the uptrend is still in play unless the GBP/JPY breaks below the July 6 low at 160.38.
GBP/JPY 1-hour chart
The GBP/JPY hourly chart portrays the cross-currency pair as downward biased. Once the GBP/JPY plunged below the 200-hour EMA around 164.50, it exacerbated a fall towards its weekly lows near 163.00. Late in the session, the GBP/JPY bounced off some 20 pips to current exchange rate levels. Nevertheless, sellers are in charge unless GBP/JPY buyers reclaim 164.00.
Therefore, the GBP/JPY’s first support would be the July 22 low at 163.00. A breach of the latter will expose the S3 daily pivot point at 162.75. Once cleared, the cross next stop would be the confluence of the S4 daily pivot and the July 12 low around the 161.80-85 area.
GBP/JPY Key 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.
