- GBP/JPY struggles to break above the previous weekly high due to geopolitical tensions and a shift towards safe-haven assets.
- Support is located at the intersection of the bottom of the Kumo and Kijun-Sen at 181.20.
- Resistance lies at 183.00, with the next hurdle at the October 12 high at 183.81.
He GBP/JPY consolidates within the Ichimoku (Kumo) cloud, posting modest losses of 0.25% after failing to overcome the previous weekly high of 182.80 amid deteriorating risk appetite. Geopolitical reasons and the flight towards safe haven assets weighed on the British Pound (GBP), which extended its losses for two consecutive days against the Japanese Yen (JPY), and traded around 182.03, slightly below the Tenkan-Sen line .
The daily chart shows the pair consolidating after falling towards the October 3 low at 178.03, with prices rising towards the 183.80 area before settling at current exchange rates. The pair is trading sideways, although slightly bearish, as GBP/JPY approaches the Kumo low, which, once broken, could exacerbate an acceleration of the downtrend.
The first support is seen at the confluence of the bottom of the Kumo and Kijun-Sen at 181.20. If this level is reached, GBP/JPY would break through the next support at 181.00, with sellers focusing on the October 3 daily low at 178.03, before targeting the July 28 low at 176.30.
On the other hand, if GBP/JPY breaks above 183.00, it would expose the October 12 high at 183.81 before buyers challenge the Kumo top around 184.20/35.
GBP/JPY Price Action – Daily Chart
GBP/JPY Technical Levels
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.
