GBP/JPY Price Analysis: Slumps below the 200/100-DMA as buyers failed to conquer 164.00

GBP/JPY slid below crucial daily EMAs, namely the 200 and the 100-day EMAs.
The GBP/JPY must crack the 161.00 figure for a bearish continuation.
On the other hand, GBP/JPY buyers reclaiming 162.00 could pave the way for further upside.

Christian Borjon Valencia FXStreet

The GBP/JPY registers minuscule gains as Friday’s Asian session begins after tumbling below the 200 and 100-day Exponential Moving Averages (EMAs), at 161.82 and 161.98, respectively. After forming a dark cloud cover and missing to hold to 162.00, the GBP/JPY is trading at around 161.70.

GBP/JPY Thursday’s price action changed the pair’s bias as sellers reclaimed solid support areas, which turned to resistance. Although the Relative Strength Index (RSI) is in bullish territory, its slope aims downwards, suggesting that sellers are gaining momentum. Still, the Rate of Change (RoC) suggests the opposite, that buyers are moving in. Therefore, the GBP/JPY bias is neutral.

For a GBP/JPY bearish continuation, traders must drag prices toward the 50-day EMA at 161.10. Once cleared, the GBP/JPY might test the 20-day EMA at 160.87 before dropping to the 160.00 figure.

As an alternate scenario, if the GBP/JPY reclaims 162.30, that could open the door for further upside. Hence, the GBP/JPY first resistance would be the February 23 daily high at 162.85. The next stop would be the weekly high at 163.75 before testing a major five-month-old downslope trendline that passes around.

GBP/JPY Daily chart

GBP/JPY Key technical levels

GBP/JPY

Overview
Today last price	161.65
Today Daily Change	-0.88
Today Daily Change %	-0.54
Today daily open	162.53

Trends
Daily SMA20	160.33
Daily SMA50	160.27
Daily SMA100	163.55
Daily SMA200	163.32

Levels
Previous Daily High	163.57
Previous Daily Low	162.4
Previous Weekly High	162.18
Previous Weekly Low	158.4
Previous Monthly High	161.85
Previous Monthly Low	155.36
Daily Fibonacci 38.2%	162.84
Daily Fibonacci 61.8%	163.12
Daily Pivot Point S1	162.09
Daily Pivot Point S2	161.66
Daily Pivot Point S3	160.92
Daily Pivot Point R1	163.27
Daily Pivot Point R2	164
Daily Pivot Point R3	164.44

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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