GBP/JPY Price Analysis: Trimmed last week’s losses, regains the 200-DMA

GBP/JPY registered hefty gains of 3.96% during the week.
Long-term, the GBP/JPY is neutral upwards, though if it clears 162.57, that could open the door for further gains.
Per the daily chart, if the GBP/JPY clears 162.25, the pair can rally towards 164.00.

Christian Borjon Valencia FXStreet

The GBP/JPY advanced for the fourth straight day and reclaimed the 200-day EMA after hitting a daily low at around 159.43, though buyers stepped, sending the cross-currency pair towards its daily high of 162.17. At the time of writing, the GBP/JPY is trading at 161.54, above its opening price by 0.62%.

GBP/JPY Price Analysis: Technical outlook

From a weekly chart perspective, the GBP/JPY is neutral-to-upward biased after a volatile trading week that witnessed the pound sliding towards a YTD low of 148.63 before recovering close to 1200 pips. GBP/JPY traders should be aware of oscillators shifting to positive territory. Therefore, a re-test of the 20-week EMA, around 162.57, is on the cards.

The GBP/JPY daily chart shows that Friday’s rally was capped at a “packed” supply zone, with the 20, and the 50-day EMAs hoovering around 162.15-162.25, ahead of the 100-day EMA at 162.88. Worth noting that, albeit solid resistance lie above, the GBP/JPY pierced the 78.6% Fibonacci retracement at 161.05, opening the door for further upside.

Therefore, the GBP/JPY first resistance would be the 162.00 figure. Once cleared it would expose the aforementioned 162.15-162.25 area, followed by the 100-day EMA at 162.88 ahead of the 163.00 mark. A breach of the latter will expose the September 22 daily high at 164.43.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	161.54
Today Daily Change	1.04
Today Daily Change %	0.65
Today daily open	160.63

Trends
Daily SMA20	162.19
Daily SMA50	162.35
Daily SMA100	162.92
Daily SMA200	160.41

Levels
Previous Daily High	160.65
Previous Daily Low	155.61
Previous Weekly High	164.45
Previous Weekly Low	155.45
Previous Monthly High	163.99
Previous Monthly Low	159.45
Daily Fibonacci 38.2%	158.73
Daily Fibonacci 61.8%	157.54
Daily Pivot Point S1	157.28
Daily Pivot Point S2	153.92
Daily Pivot Point S3	152.24
Daily Pivot Point R1	162.31
Daily Pivot Point R2	164
Daily Pivot Point R3	167.35

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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