• GBP/JPY eradicates Monday’s gains and gained more than 1% on Tuesday.
  • The GBP/JPY is downward biased, but Tuesday’s price action opened the door for further upside, targeting the 50-DMA at 163.86.

The GBP/JPY pares Monday’s losses and some more, forming a bullish-engulfing candle pattern, meaning buyers overcome sellers, reciaiming the 162.00 figure on its way north. However, solid resistance lies ahead of the current exchange rate, with the 20 and 100-day EMAs hovering around the 162.80-163.00 area. At the time of writing, GBP/JPY is trading at 162.39.

GBP/JPY Price Analysis: Technical outlook

The cross-currency pair is exchanging hands below the 20, 100, and 50-day EMAs, suggesting that the GBP/JPY is downward biased. Nevertheless, Tuesday’s rally towards the 162.80-163.00 area, although rejected, it opened the door for further gains. So from a technical perspective, a break above the latter will put the 50-day EMA at 163.086 in play, ahead of the July 27 high at 166.33.

On the flip side, the GBP/JPY first support will be the 162.00 mark. Once cleared, the next support will be the figure at 161.00, ahead of the August 16 low at 160.08.

GBP/JPY Daily chart

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price 162.39
Today Daily Change 1.61
Today Daily Change % 1.00
Today daily open 160.72
 
Trends
Daily SMA20 163.22
Daily SMA50 164.15
Daily SMA100 163.04
Daily SMA200 158.72
 
Levels
Previous Daily High 162.16
Previous Daily Low 160.36
Previous Weekly High 163.85
Previous Weekly Low 161.27
Previous Monthly High 166.34
Previous Monthly Low 160.4
Daily Fibonacci 38.2% 161.05
Daily Fibonacci 61.8% 161.47
Daily Pivot Point S1 160
Daily Pivot Point S2 159.28
Daily Pivot Point S3 158.2
Daily Pivot Point R1 161.8
Daily Pivot Point R2 162.88
Daily Pivot Point R3 163.6

 

 

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