GBP/JPY Price Analysis: To extend its rally, as a dragonfly doji emerges around 160.50

Dragonfly doji surfaced as the GBP/JPY recovered from weekly lows around the mid-159/160 mark.
GBP/JPY Price Analysis: Neutral to downward biased, but in the short term, it could test the 200-DMA.

Christian Borjon Valencia FXStreet

The GBP/JPY is almost unchanged as the Asian session kicks in, though Wednesday’s session witnessed the cross falling to new weekly lows of 159.50. However, the GBP/JPY pair staged a comeback and formed a dragonfly doji, which suggests bulls are moving in. The GBP/JPY is trading at 160.50 at the time of writing.

GBP/JPY Price Analysis: Technical outlook

From a daily timeframe perspective, the GBP/JPY is still neutral-to-downward biased, with the exchange rate remaining below the trend-setter 200-day Exponential Moving Average (EMA) at 162.14, which is also above the 50-day EMA at 161.74. For the GBP/JPY to continue its downtrend, it would need to crack the 20-day EMA at 160.05, and then, the pair may pose a threat to break below the weekly low of 159.50.

As an alternate scenario, for the GBP/JPY bullish continuation, the pair needs to reclaim the psychological 161.00 figure. Break above will expose the 50-day EMA, followed by the 162.00 mark. Once broken, the bulls could challenge the 200-day EMA at 162.14.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	160.61
Today Daily Change	0.06
Today Daily Change %	0.04
Today daily open	160.55

Trends
Daily SMA20	159.27
Daily SMA50	163.07
Daily SMA100	163.98
Daily SMA200	163.46

Levels
Previous Daily High	161.85
Previous Daily Low	159.99
Previous Weekly High	161.54
Previous Weekly Low	156.06
Previous Monthly High	169.28
Previous Monthly Low	157.84
Daily Fibonacci 38.2%	160.7
Daily Fibonacci 61.8%	161.14
Daily Pivot Point S1	159.75
Daily Pivot Point S2	158.94
Daily Pivot Point S3	157.89
Daily Pivot Point R1	161.6
Daily Pivot Point R2	162.65
Daily Pivot Point R3	163.46

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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