GBP/JPY Price Analysis: The pair stalls at the 61.8% Fibonacci retracement level

GBP/JPY trades flat on Monday and stalls ahead of 140.00.
The price has all met some resistance at the previous wave high.

Rajan Dhall, MSTA FX Daily

GBP/JPY daily chart

GBP/JPY has been trending over the past five sessions but on Monday the price has met some resistance. JPY is traditionally a safe-haven currency and GBP moves have been dominated by the risk theme. This has led the pair to trade higher with the stock markets but the price has not continued with that theme today. Later in the week, there could be some volatility in the pair as the market gets the latest Bank of England rate decision and accompanying updates.

Looking at the chart, the price has also stalled at the 61.8% Fibonacci extension zone. The area is also very close to the previous wave high at 139.74. It seems that the bulls have not managed to conjure enough momentum to test 140.00 for now. This does not mean the rally is over it just means there could be a small pullback before the trend continues.

The indicators might also support the theory above. The Relative Strength Index is in the overbought area and this means the price could move lower in the near term. The MACD is looking positive as the histogram is in the green and the signal lines are above zero.

Overall in the medium term, the price is still in an uptrend but if the market manages to break 139.74 then the uptrend would be fully back on. On the downside, the next major support is at 136.00 and a break below there could take the price to the channel low.

Additional levels

GBP/JPY

Overview
Today last price	138.57
Today Daily Change	0.03
Today Daily Change %	0.02
Today daily open	138.54

Trends
Daily SMA20	135.56
Daily SMA50	134.82
Daily SMA100	133.61
Daily SMA200	137.55

Levels
Previous Daily High	139.21
Previous Daily Low	136.79
Previous Weekly High	139.21
Previous Weekly Low	135.15
Previous Monthly High	139.21
Previous Monthly Low	132.95
Daily Fibonacci 38.2%	138.28
Daily Fibonacci 61.8%	137.71
Daily Pivot Point S1	137.15
Daily Pivot Point S2	135.77
Daily Pivot Point S3	134.74
Daily Pivot Point R1	139.56
Daily Pivot Point R2	140.59
Daily Pivot Point R3	141.98

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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