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.

Christian Borjon Valencia FXStreet

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

GBP/JPY

Overview
Today last price	163.22
Today Daily Change	-1.35
Today Daily Change %	-0.82
Today daily open	164.64

Trends
Daily SMA20	164.37
Daily SMA50	163.48
Daily SMA100	161.86
Daily SMA200	158.14

Levels
Previous Daily High	166
Previous Daily Low	164.54
Previous Weekly High	165.2
Previous Weekly Low	161.84
Previous Monthly High	168.74
Previous Monthly Low	160
Daily Fibonacci 38.2%	165.1
Daily Fibonacci 61.8%	165.44
Daily Pivot Point S1	164.12
Daily Pivot Point S2	163.6
Daily Pivot Point S3	162.67
Daily Pivot Point R1	165.58
Daily Pivot Point R2	166.51
Daily Pivot Point R3	167.03

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.

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