Bounced away from solid support at 149.20-40, rebounded to 150.50

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  • After falling for eight consecutive days, the British pound is down 0.50%.
  • Risk appetite benefits the risk sensitive GBP.
  • GBP / JPY: Strong demand was found around the 149.00 zone as the pair gains more than 130 pips on the day.

The GBP it advances during the American session as risk-sensitive currencies rise, while safe-haven currencies such as the Japanese yen and the Swiss franc are down sharply. GBP / JPY is on the rise, trading at 150.51 at the time of writing.

Market sentiment is bullish in the American session, with US equity indices rising between 0.77% and 2.62%. It appears that the Omicron variant, although more transmissible, causes mild symptoms that would not threaten people’s lives. That, coupled with the US central bank seeking to end the phasing out of bonds in the first quarter of 2022, weighed on the outlook for safe-haven assets, with US stocks rebounding and yields. of US bonds following in his footsteps.

GBP / JPY Price Forecast: Technical Outlook

GBP / JPY has been in free fall since November 24, when it broke the 50-day moving average (DMA). However, the December 1 low at 149.60 appears to be the bottom of the eight-day decline, at press time advancing 0.50%. Also, an ascending trend line traveling from July lows to September cycle lows was briefly broken, but GBP bulls entered around the 149.40 area, pushing the pair higher.

On the result of a daily close above 150.45, that would form a bullish engulfing candle pattern with bullish implications. The first resistance on the way to the upside would be the psychological level of 151.00. Failing to overcome the latter would expose the November 29 high at 151.90, followed by the 200 WMD at 152.43.

On the other hand, the first support level for GBP / JPY would be 150.00. A break below that level would expose the rising trend line that sits around 149.59, followed by the October 1 low at 149.22.

Additional technical levels

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