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GBP/JPY technical analysis: Set-up remains in favour of bullish traders, dip-buying to help limit any pullback

  • Struggles to sustain above 133.00 handle and retreats from 61.8% Fibo. level.
  • Reviving safe-haven demand seemed to be the only factor capping further gains.

The GBP/JPY cross continued with its struggle to sustain above the 133.00 handle and once again started retreating from a resistance marked by 61.8% Fibo. level of the 137.80-126.54 downfall.
 
With investors looking past the latest Brexit optimism, reviving safe-haven demand benefitted the Japanese Yen and seemed to be the only factors keeping a lid on any further up-move for the cross.
 
However, the fact that the cross has decisively broken through a confluence resistance earlier this week, the set-up remains in favour of bullish traders and support prospects for additional gains.
 
Moreover, technical indicators maintained their bullish bias on 4-hourly/daily charts and further add credence to the near-term constructive outlook amid receding fears of a no-deal Brexit.
 
Hence, any meaningful pullback seems to attract some dip-buying interest near the 132.00 round figure mark - 50% Fibo. level - and help limit the downside near the mentioned resistance breakpoint.
 
On the flip side, sustained move beyond the 133.00 handle, leading to a subsequent beyond the 133.35-40 region now seems to set the stage for an extension of the recent recovery move from multi-year lows.

GBP/JPY daily chart

fxsoriginal

GBP/JPY

Overview
Today last price132.9
Today Daily Change-0.03
Today Daily Change %-0.02
Today daily open132.93
 
Trends
Daily SMA20130.07
Daily SMA50131.65
Daily SMA100135.56
Daily SMA200139.57
Levels
Previous Daily High133.38
Previous Daily Low132.68
Previous Weekly High132.19
Previous Weekly Low126.67
Previous Monthly High132.56
Previous Monthly Low126.54
Daily Fibonacci 38.2%133.11
Daily Fibonacci 61.8%132.94
Daily Pivot Point S1132.61
Daily Pivot Point S2132.29
Daily Pivot Point S3131.91
Daily Pivot Point R1133.32
Daily Pivot Point R2133.7
Daily Pivot Point R3134.02

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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