GBP/JPY rebounds towards 162.00 amid dovish BOJ, risk-off mood

GBP/JPY sees a quick rebound amid dovish BOJ comments.
Risk-off mood lifts the demand for the bonds, weighing down on the yields.
GBP/JPY bulls stay hopeful whilst above the 21-SMA support.

Dhwani Mehta FXStreet

GBP/JPY is recovering from lower levels this Thursday while snapping a four-day uptrend to six-day highs of 162.28.

At the time of writing, the cross is posting small losses on the day to trade at 161.80, weighed down by the risk-off market profile, which has revived the safe-haven flows into the US Treasuries. This has triggered a fresh corrective decline in the Treasury yields across the curve, collaborating with the downside on the spot.

The hawkish Fed minutes combined with the lingering Russia-Ukraine war-driven risks are tempering risk sentiment, as the US dollar looks to regain its upward trajectory. Meanwhile, the latest dovish remarks from the Bank of Japan (BOJ) officials, defending the country’s ultra-loose monetary policy, are helping keep the cross afloat.

The pair is likely to remain at the mercy of the broader market sentiment, yields’ price action, the upcoming Ukraine updates and Fedspeak.

GBP/JPY: Technical outlook

From a short-term technical perspective, GBP/JPY bulls remain hopeful so long as they defend the bullish 21-Simple Moving Average (SMA) at 161.36.

A breach of the latter could bring the horizontal 50-SMA at 161.08 into play. The April 5 lows at 160.51 will be the line in the sand for buyers.

GBP/JPY four-hour chart

The 14-day Relative Strength Index (RSI), however, is inching higher while above the midline, allowing room for more upside.

Immediate resistance is seen at 162.28 (the previous day’s high), above which buyers will gear up for a fresh run-up towards 165.00.

GBP/JPY additional levels to watch

GBP/JPY

Overview
Today last price	161.78
Today Daily Change	-0.12
Today Daily Change %	-0.07
Today daily open	161.89

Trends
Daily SMA20	158.48
Daily SMA50	156.44
Daily SMA100	154.94
Daily SMA200	153.79

Levels
Previous Daily High	162.28
Previous Daily Low	161.53
Previous Weekly High	164.64
Previous Weekly Low	159.05
Previous Monthly High	164.64
Previous Monthly Low	150.99
Daily Fibonacci 38.2%	161.99
Daily Fibonacci 61.8%	161.82
Daily Pivot Point S1	161.52
Daily Pivot Point S2	161.15
Daily Pivot Point S3	160.76
Daily Pivot Point R1	162.27
Daily Pivot Point R2	162.65
Daily Pivot Point R3	163.02

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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