GBP/JPY Price Analysis: Trims Thursday’s losses near the 181.60 area

Lallalit Srijandorn FXStreet

GBP/JPY recovers some of its previous day's losses and holds above 181.60, up 0.24% for the day.
The immediate resistance emerges at 181.70; the critical support level to watch is at 181.00
The Relative Strength Index (RSI) and MACD are still located in bearish territory.

The GBP/JPY cross recovers its recent losses during the early Asian session on Friday. The cross currently trades around 181.62, gaining 0.24% for the day. A divergence in the monetary policy stance between the Bank of England (BoE) and the Bank of Japan (BoJ) acts as a tailwind for the GBP/JPY cross.

In its August policy meeting, the Bank of England (BoE) raised interest rates by 25 basis points (bps) to a 15-year high of 5.25% from 5%. As inflation remains elevated, the markets anticipated that the BoE would likely increase interest rates twice more by the end of the year. On the other hand, BoJ Governor Kazuo Ueda reiterated last week that the central bank will not hesitate to ease policy further and that more time is required to achieve the 2% inflation target sustainably.

According to the four-hour chart, GBP/JPY’s immediate resistance emerges at 181.70 (the 50-hour EMA). Any meaningful follow-through buying could pave the way to the next hurdle at 182.50 (High of July 21) en route to 182.75 (High of August 3). Following that, GBP/JPY has room to test the additional upside filter at 183.20 (High of August 1).

On the downside, the critical support level to watch is at 181.00, the confluence of the psychological round mark and the low of August 3. A breach of the latter, further downside is expected. The next contention is seen at 180.45 (Low of August 3), followed by 179.75 (Low July 20). Further south, the cross will see a drop to 179.50 (Low of July 13).

However, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are still located in bearish territory, highlighting that further downside cannot be ruled out.

GBP/JPY four-hour chart

GBP/JPY

Overview
Today last price	181.62
Today Daily Change	0.42
Today Daily Change %	0.23
Today daily open	181.2

Trends
Daily SMA20	181.4
Daily SMA50	179.78
Daily SMA100	173.38
Daily SMA200	168.19

Levels
Previous Daily High	182.77
Previous Daily Low	180.46
Previous Weekly High	182.35
Previous Weekly Low	176.32
Previous Monthly High	184.02
Previous Monthly Low	176.32
Daily Fibonacci 38.2%	181.34
Daily Fibonacci 61.8%	181.89
Daily Pivot Point S1	180.18
Daily Pivot Point S2	179.16
Daily Pivot Point S3	177.87
Daily Pivot Point R1	182.49
Daily Pivot Point R2	183.78
Daily Pivot Point R3	184.8

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.