GBP/JPY Price Analysis: Snap five days of losses, meanders around 154.00
- On Tuesday, the GBP/JPY advances 0.12% during the North American session.
- Geopolitical issues and US central bank hawkish expectations dented investors' sentiment.
- GBP/JPY is upward biased, supported by the confluence of the 50, 100, and 200-DMAs around the 152.99-153.37 area.
The British pound snaps five days of losses against the Japanese yen, influenced by dampened market sentiment, spurred by the Ukraine – Russia conflict, alongside US central bank tightening monetary policy conditions, as the Federal Reserve begins its two-day meeting. At the time of writing, the GBP/JPY is trading at 153.78.
The GBP/JPY remained subdued in the overnight session, for North American traders, in the 153.12-70 range. Nevertheless, JPY bulls have been unable to test the YTD low reached on January 24 at 152.90, attributed to the confluence of the daily moving averages (DMAs) in the 152.99-153.37 range that provided support for British pound buyers.
GBP/JPY Price Forecast: Technical outlook
That said, the GBP/JPY daily chart supports an upward bias, despite falling 480 pips since January 12, after reaching a high at around 157.70.
To the upside, the cross-currency first resistance would be the confluence of the 38.2% Fibonacci retracement level, drawn from the 149.45-157.77 range, alongside the January 24 daily high at 154.59. A break above that level would expose the January 21 daily high at 155.22, followed by January 20 daily high at 156.06.
Contrarily, the first support would be the 50-DMA at 153.37, followed by the 100-DMA at 153.32 and then the 200-DMA at 152.99.
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.
