- The GBP/JPY “bearish engulfing” suggests growing bearish momentum.
- The break below Tenkan-Sen may lead to further declines, with key supports in focus.
- Resistance is seen at 192.00, key recent highs for reversals; market sentiment is monitored.
The GBP/JPY pair retreats late on Wednesday during the North American session, losing 0.27% as market sentiment worsens. Speculation that the Federal Reserve would not lower rates as expected spurred risk aversion, and investors seeking safety flocked to the Japanese yen, the dollar and the Swiss dollar. The cross operates at 191.82.
GBP/JPY Price Analysis: Technical Outlook
The image shows the formation of a bearish engulfing candle pattern, suggesting that the bears are gaining momentum. However, to confirm that the GBP/JPY pair has peaked around 192.94 today, sellers must push prices below the Tenkan-Sen level at 191.49. Once passed, the next stop would be the Senkou Span A at 191.12, before falling to the Kijun Sen at 190.74.
On the other hand, the first resistance for GBP/JPY would be the 192.00 level, followed by the April 10 high at 192.95. The next resistance would be the current yearly high at 193.53.
GBP/JPY Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
