- GBP/JPY manages losses of 0.54%, clinging to the top of the Ichimoku Cloud at 183.25.
- Optimistic market sentiment and fear of intervention by Japanese authorities could limit the possible recovery.
- If GBP/JPY dives inside the Kumo, the first support is at 183.00, followed by the Tenkan-Sen at 182.52.
The British pound (GBP) loses some ground to the Japanese yen (JPY) on Wednesday, but clings to the top of the Ichimoku (Kumo) cloud around 183.25, although it reaches losses of 0.54%.
Bullish market sentiment has limited GBP/JPY’s decline within the Kumo, which could open the door to further losses. If the cross remains above that level, it could open the door to recovering 184.00, but fear that the Japanese authorities will intervene in the currency markets could limit the recovery and trigger another downward leg.
On the other hand, if GBP/JPY sinks inside the Kumo, the first support would be 183.00. Below that level additional losses would occur, first on the Tenkan-Sen at 182.52, followed by 182.00. Once overcome, the next support would be the bottom of the Kumo at 181.55/60, before reaching the Kijun-Sen at 181.16.
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.
