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GBP/JPY Price Analysis: Falls on haven flows, back below 161.00

  • GBP/JPY extends its losses, going from around 163.00 to 160.60 in the last four days.
  • Risk aversion in the forex space underpins safe haven pairs.
  • GBP/JPY may resume its bearish bias below 160.34. Otherwise, a test of 162.07 is anticipated.

GBP/JPY stumbles and refreshes two-week lows, awaiting a break below the 6 Jul low of 160.38, which could exacerbate a move towards the 2 Aug low of 159.44, before falling to the 200 day EMA at 158.65. At time of writing, GBP/JPY is trading above 160.69, down 0.75%, due to risk aversion momentum in the forex space, to the detriment of currencies such as Pound, AUD and NZD .

GBP/JPY Price Analysis: Technical Outlook

The GBP/JPY long-term has a neutral bias to the downside, as the daily chart shows. A successive series of lower highs and lower lows, coupled with the Relative Strength Index (RSI) heading lower and below its RSI 7-day SMA, exacerbated the cross’s decline over the past four days. Also, the 20-day EMA is about to cross below the 100-day EMA at 162.97, which would put additional selling pressure on the pair. This could take GBP/JPY towards the 200 day EMA at 158.65.

Therefore, the GBP/JPY first support would be the August 15 low at 160.34. A break below would expose the Jul 6 low at 160.38, followed by the Aug 2 low at 159.44, followed by the aforementioned 200 day EMA.

On the other hand, the first resistance of the GBP/JPY would be the August 15 high at 162.07. Once broken, the next resistance will be the 12th August high at 162.79, followed by the 163.00 figure.

GBP/JPY daily chart

GBP/JPY Key Technical Levels

GBP/JPY

Panorama
Last Price Today 160.68
Today’s Daily Change -1.30
Today’s Daily Change % -0.80
Today’s Daily Opening 161.98
Trends
20 Daily SMA 163.44
50 Daily SMA 164.24
100 Daily SMA 163.05
200 Daily SMA 158.68
levels
Previous Daily High 162.8
Previous Daily Minimum 161.81
Previous Maximum Weekly 163.85
Previous Weekly Minimum 161.27
Monthly Prior Maximum 166.34
Previous Monthly Minimum 160.4
Daily Fibonacci 38.2% 162.19
Daily Fibonacci 61.8% 162.42
Daily Pivot Point S1 161.59
Daily Pivot Point S2 161.21
Daily Pivot Point S3 160.6
Daily Pivot Point R1 162.59
Daily Pivot Point R2 163.19
Daily Pivot Point R3 163.58

Source: Fx Street

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