GBP/JPY Price Analysis: Uptrend fades as a dragonfly doji surfaces in the daily chart

GBP/JPY failed to break strong resistance at the confluence of technical indicators.
A bearish scenario lies below 164.00, exposing crucial moving averages.
On the upside, the GBP/JPY can test the YTD high at 166.00.

Christian Borjon Valencia FXStreet

GBP/JPY barely advanced as the Asian session began after Monday’s rally challenged resistance but failed to capitalize on an upbeat sentiment. At the time of writing, the GBP/JPY exchanges hand at 164.32, consolidating within a 180-pip range.

GBP/JPY Price action

In the last few days, the GBP/JPY price action printed back-to-back candles that portray the uptrend are fading. Last Friday’s, an inverted hammer, followed by a dragonfly doji, depicts indecision amongst the GBP/JPY traders. Additionally, a four-month-old resistance trendline that passes around the 164.30-50 area capped any upward moves, suggesting that a pullback could be underway.

Oscillators like the Relative Strength Index (RSI) at bullish territory turned flat as buying pressure faded. The Rate of Change (RoC), turned neutral, opening the door for a retracement.

Should a bearish scenario arise, the GBP/JPY could pivot toward the 20-day Exponential Moving Average (EMA) at 162.53 before challenging the 100-day EMA At 162.20. A breach of the latter will expose the 50-day EMA at 162.03 before testing the 200-day EMA at 161.98.

For a bullish resumption, the GBP/JPY must crack 164.50, which, once cleared, and the pair would be heading to test two-month highs at 166.00. On further strength, the next upside target to keep in mind would be the December 13 daily high at 169.27.

GBP/JPY Daily chart

GBP/JPY Technical level

GBP/JPY

Overview
Today last price	164.34
Today Daily Change	0.44
Today Daily Change %	0.27
Today daily open	163.9

Trends
Daily SMA20	162.08
Daily SMA50	161.49
Daily SMA100	162.35
Daily SMA200	163.17

Levels
Previous Daily High	165.47
Previous Daily Low	163.63
Previous Weekly High	165.47
Previous Weekly Low	159.66
Previous Monthly High	165.47
Previous Monthly Low	158.27
Daily Fibonacci 38.2%	164.33
Daily Fibonacci 61.8%	164.77
Daily Pivot Point S1	163.2
Daily Pivot Point S2	162.49
Daily Pivot Point S3	161.35
Daily Pivot Point R1	165.04
Daily Pivot Point R2	166.18
Daily Pivot Point R3	166.89

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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