GBP/JPY Price Analysis: To test 159.00 as a bullish harami emerges

GBP/JPY rebounds at weekly lows and is forming a bullish harami, suggesting that prices could aim higher.
Immediate resistance levels for the GBP/JPY lie at 159.00, ahead of the 20-DMA and 160.00.
For a bearish continuation, the GBP/JPY needs to clear 157.42, aiming to reach 157.00.

Christian Borjon Valencia FXStreet

The Pound Sterling (GBP) trims some of Tuesday’s losses, and climbs toward the 158.50 area on Wednesday, boosted by an upbeat sentiment across the financial markets. A speech by the Federal Reserve Chair Jerome Powell spurred a risk-on impulse and weakened safe-haven peers. At the time of writing, the GBP/JPY exchanges hands at 158.53.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY bounced from weekly lows reached on Tuesday at around 157.42, with the cross-currency pair testing a one-month-old downslope previous resistance trendline, which turned support and capped the GBP/JPY’s fall. However, as shown by the daily chart, GBP/JPY’s price action would remain sideways, though tilted downwards, as long as the long-term moving averages stay above the exchange rate.

For the GBP/JPY pair to continue its bearish path, it would need to break below the weekly low of 157.42, which, once cleared, would send the GBP/JPY sliding toward the February 3 low of 156.72. A breach of the latter and the 156.00 figure is up for grabs.

As an alternate scenario, the GBP/JPY key resistance areas lie at the 20-day Exponential Moving Average (EMA) at 159.42, followed by the 160.00 psychological level. Break above and the GBP/JPY could rally and test the 50-day EMA at 160.96.

GBP/JPY key technical levels

GBP/JPY

Overview
Today last price	158.62
Today Daily Change	0.79
Today Daily Change %	0.50
Today daily open	157.83

Trends
Daily SMA20	159.38
Daily SMA50	161.59
Daily SMA100	163.45
Daily SMA200	163.27

Levels
Previous Daily High	159.59
Previous Daily Low	157.43
Previous Weekly High	161.43
Previous Weekly Low	156.73
Previous Monthly High	161.85
Previous Monthly Low	155.36
Daily Fibonacci 38.2%	158.26
Daily Fibonacci 61.8%	158.76
Daily Pivot Point S1	156.98
Daily Pivot Point S2	156.12
Daily Pivot Point S3	154.82
Daily Pivot Point R1	159.13
Daily Pivot Point R2	160.44
Daily Pivot Point R3	161.29

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.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold: $4,150 remains a tough nut to crack as US CPI report looms

Gold pauses recovery near $4,150 as sellers jump in amid pre-US CPI profit-taking. US Dollar licks wounds amid US-Iran optimism and falling Oil prices-led easing inflation concerns. Gold reclaimed key 21-day SMA support on the daily chart as RSI flipped bullish.

NYSE taps Avalanche for clearing and settlement of tokenized securities

Avalanche defied the crypto market drawdown on Monday, up 4% after announcing it will provide the core ledger technology for clearing in the New York Stock Exchange's upcoming tokenized securities trading platform.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.