GBP/JPY Price Analysis: Tumbles below 164.00, approaches the H4 head-and-shoulders target

  • GBP/JPY is set to finish the week with decent losses of 1.28%.
  • From a daily chart perspective, the cross-currency GBP/JPY shifted to neutral biased.
  • Short term, the GBP/JPY is about to hit 162.30. the head-and-shoulders target.

The GBP/JPY drops for the four consecutive trading session, down by 0.86% on Friday, after Wall Street finished the last trading day with losses between 0.45% and 0.90%, spurred by a dismal sentiment. In the FX complex, safe-haven peers rose, except for the greenback, which finished unchanged. At the time of writing, the GBP/JPY is trading at 163.24, as Wall Street’s close.

GBP/JPY Price Analysis: Technical outlook

From a daily chart perspective, the GBP/JPY is neutral biased, after sliding below the 55-day EMA. It’s worth noting that the cross, tumbled below the August 17 daily low at 163.55, opening the door for further losses. Even though, the GBP/JPY reached a daily low at around 162.73 and failed to stick below 163.00, the bias shifted to neutral-downwards.

Short term, the GBP/JPY four-hour scale depicts the cross-currency pair formed a head-and-shoulders chart pattern, which targets a drop towards 162.30, as measured from head-to-the-neckline chart pattern. On Friday, the GBP/JPY tumbled from around 164.50, and reached a daily low at 162.73, shy of the target. Nevertheless, the GBP/JPY bias remain downwards, so it might reach the head-and-shoulders target, in the near term.

Therefore, the GBP/JPY first support would be the 163.00 psychological level. A breach of the latter will expose the September 16 cycle low at 162.73, followed by the head-and-shoulders target at 162.30.

GBP/JPY Key Technical Levels


Today last price 163.24
Today Daily Change -1.32
Today Daily Change % -0.80
Today daily open 164.56
Daily SMA20 163.27
Daily SMA50 163.28
Daily SMA100 163.06
Daily SMA200 159.99
Previous Daily High 165.74
Previous Daily Low 164.48
Previous Weekly High 166.32
Previous Weekly Low 160.66
Previous Monthly High 163.99
Previous Monthly Low 159.45
Daily Fibonacci 38.2% 164.96
Daily Fibonacci 61.8% 165.26
Daily Pivot Point S1 164.12
Daily Pivot Point S2 163.67
Daily Pivot Point S3 162.86
Daily Pivot Point R1 165.37
Daily Pivot Point R2 166.18
Daily Pivot Point R3 166.63



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