GBP/JPY Price Analysis: Trades near weekly highs around 151.50 on the back of a hawkish BoE


  • On Thursday, the GBP/JPY reached a new four-day high at 151.48.
  • Market sentiment is mixed, and it could weigh on the British pound.
  • The daily chart shows that the GBP/JPY might consolidate before resuming its uptrend.

The GBP/JPY is steadily trading at 151.39, barely down 0.01% as the Asian session kicks in. On Thursday, the cross-currency dipped to a daily low of 149.53, but as the European session began and the Bank of England released its monetary policy statement, the cross-currency soared above 151.00 for the first time in four days.

The market sentiment is a mixed bag. In the US, the Dow Jones and the S&P 500 closed with gains of 1.48% and 1.21%, respectively. Meanwhile, the Asian equity futures are splitting between winners and losers. The Hang-Seng and the S&P/ASX 200 Futures are rising 1.42% and 1.08%, each. On the other hand, the Nikkei 225 and Topix Futures are falling 0.01% and 0.07%, respectively.

GBP/JPY Technical Analysis

Daily chart

The GBP/JPY is trading near the 50-day moving average (DMA) at 151.50. Around that level, a descending trendline coupled with the 50-DMA will act as resistance. A decisive break of the latter could push the price higher. The following supply zone would be 152.00. A breach of that level could expose the confluence of the 200-DMA and the September 14 high at 152.85. The next hurdle on the way up for the GBP/JPY would be July’s 13 high at 153.48.

On the flip side, the bears would need to reclaim 150.00, near the 200-DMA lying around 149.87. 

The Relative Strength Index, which is a momentum indicator, is at 51, almost flat. It could be a signal of exhaustion due to the recent spike in the GBP/JPY. The price might consolidate, awaiting for fresh impetus to resume its uptrend.

KEY TECHNICAL LEVELS TO WATCH

GBP/JPY

Overview
Today last price 151.34
Today Daily Change 1.76
Today Daily Change % 1.18
Today daily open 149.58
 
Trends
Daily SMA20 151.29
Daily SMA50 151.52
Daily SMA100 152.76
Daily SMA200 149.76
 
Levels
Previous Daily High 149.96
Previous Daily Low 149.02
Previous Weekly High 152.85
Previous Weekly Low 150.84
Previous Monthly High 153.32
Previous Monthly Low 149.19
Daily Fibonacci 38.2% 149.6
Daily Fibonacci 61.8% 149.38
Daily Pivot Point S1 149.08
Daily Pivot Point S2 148.57
Daily Pivot Point S3 148.13
Daily Pivot Point R1 150.02
Daily Pivot Point R2 150.47
Daily Pivot Point R3 150.97

 

 

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