GBP/JPY Price Analysis: Takes offers inside weekly triangle after Japan Q2 GDP
- GBP/JPY refreshes intraday low but stays inside a one-week-old symmetrical triangle.
- Preliminary readings of Q2 Japan GDP appeared softer-than-forecast but improved from prior readings.
- 200-HMA restricts immediate upside but nearly oversold RSI hints at limited downside room.
GBP/JPY renews daily bottom near 161.60 after Japan’s Q2 GDP flashed softer than expected figures during the initial hour of Monday’s Asian session. Even so, the cross-currency pair remains inside a one-week-old symmetrical triangle, keeping the traders less interested despite the latest move.
That said, preliminary readings of Japan’s Q2 GDP appeared at 0.5% QoQ versus 0.6% expected and -0.1% prior. Further, the GDP Annualized eased below 2.5% expected to 2.2%, versus -0.5% prior.
It’s worth noting that the quote’s latest weakness also portrays the bear’s dominance below the 200-HMA, suggesting further downside.
However, the RSI (14) line is nearly oversold and the GBP/JPY appears close to the stated triangle’s support line, around 161.30, which in turn signals limited room to the south for the pair sellers to cheer.
In a case where GBP/JPY remains weak past 161.30, the 161.00 threshold and the monthly low of 159.44 will be in focus.
Alternatively, a successful break of the 200-HMA level surrounding 162.35 could propel the buyers towards the stated triangle’s upper line, at 163.25 by the press time.
Following that, the monthly peak of around 164.00 will be important to watch for GBP/JPY buyers.
GBP/JPY: Hourly chart
Trend: Sideways
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
