- GBP/JPY bounces off daily lows, though down 0.06% on the day.
- Lack of conviction from market participants keeps the GBP/JPY range limited.
- GBP/JPY is range bound with no apparent bias, but Monday’s price action gives GBP/JPY bulls “hope”.
The GBP/JPY consolidated around the 154.30-156.50 range in the last week as risk sentiment fluctuates between risk aversion/risk off mood. At the time of writing, the GBP/JPY pair is trading at 155.78.
As US equities show, financial markets are mixed and fluctuate between winners and losers. In the FX complex, a risk-on market mood spurred demand for risk-sensitive currencies such as the British pound. However, so far, it has trimmed earlier losses against the Japanese yen.
GBP/JPY Price Forecast: Technical Outlook
Monday’s price action saw the pair drop towards 155.13, a daily low, although the GBP bounced off the lows as the American session progressed.
Over the past two days, GBP/JPY price action has posted lower daily highs/lows, suggesting that the pair is headed lower, despite the daily moving averages (DMAs) indicating that the GBP /JPY is biased to the upside.
That said, GBP/JPY traders can wait on the sidelines, hoping for a breakout of the 154.30-156.50 trading range.
However, the long wick below the “real body” of the candle gave hints that the pair could resume the move higher based on Monday’s price action. The first resistance on the way north would be 156.00. Once that level gives way, the next resistance would be the February 3 daily high at 156.50, followed by the 157.00 figure.
On the downside, the break of 155.00 would expose the DMAs as targets for GBP/JPY bears.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
