GBP/JPY Price Analysis: Hits 8-year highs on improving risk appetite, bulls eye 190.00

  • The GBP/JPY uptrend appears to be overextended, with the next primary target set at the psychological level of 190.00, a high not seen since September 2008.
  • A successful breakout of 190.00 could open the way towards the September 2008 high at 198.34, and potentially even towards the 200.00 level.
  • On the downside, initial support is today’s low at 186.04, followed by the Tenkan-Sen at 185.50, the Kijun-Sen at 184.52 and the Senkou-Span A at 185.01.

In the middle of the North American session, GBP/JPY rebounded and regained eight-year highs around 188.28 on Tuesday, after US economic data sparked speculation that the Federal Reserve would not tighten its monetary policy further. Investors see this as a green light to buy riskier assets, to the detriment of the safe haven status of the Japanese Yen (JPY). The GBP/JPY pair is trading at 188.08, up more than 2%.

Given the aforementioned fundamental introduction, from a technical perspective, the GBP/JPY uptrend appears overextended, with buyers targeting 190.00, a level that has not been reached since September 2008. A break of the latter would immediately expose the high September 2008 at 198.34 before testing 200.00.

On the other hand, the first support for GBP/JPY lies at today’s low at 186.04, and once broken, the pair could fall to the Tenkan-Sen level at 185.50, followed by the Kijun-Sen at 184.52. Once broken, the next support would be the Senkou-Span A at 185.01.

GBP/JPY Price Analysis – Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Latest price today 188.03
Today Daily Change 1.86
Today’s daily variation 1.00
Today’s daily opening 186.17
Trends
daily SMA20 183.49
daily SMA50 182.95
SMA100 daily 182.98
SMA200 Journal 175.37
Levels
Previous daily high 186.21
Previous daily low 185
Previous weekly high 185.97
Previous weekly low 184.55
Previous Monthly High 184.33
Previous monthly low 178.08
Daily Fibonacci 38.2 185.75
Fibonacci 61.8% daily 185.46
Daily Pivot Point S1 185.37
Daily Pivot Point S2 184.58
Daily Pivot Point S3 184.16
Daily Pivot Point R1 186.59
Daily Pivot Point R2 187.01
Daily Pivot Point R3 187.8

Source: Fx Street

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