- The GBP/JPY pair rose more than 200 points on Monday, ahead of the release of US inflation data.
- GBP/JPY Price Analysis: In the short term, it could challenge 158.00; otherwise, a recovery to 162.00 is expected.
He GBP/JPY It breaks above the top of a trading range, moving sharply towards the top line of a descending triangle in a downtrend, at 161.19, the day’s high, but retraced some of its gains. Thus, the GBP/JPY pair is trading at 160.66, up 1.43% from its opening price.
After hitting a daily high in the session, GBP/JPY failed to hold gains above the 50-day EMA at 160.78. This would have opened the door to challenge the confluence of the 200 and 100 day EMAs, each at 161.81 and 162.00. However, the upper trend line of the symmetrical triangle limited the advance as bears piled in, dragging the pair lower.
In the short term, the GBP/JPY four hour chart shows the cross range bound, based on the EMAs below price. However, the Relative Strength Index (RSI) turned overbought but broke out of that territory, GBP/JPY fell from the daily/weekly highs.
If GBP/JPY turns lower, it will face a solid support zone. Firstly, the 200 EMA at 160.03, which, once broken, could pave the way towards the 159.14/32 area, the confluence of the 20/50/100 EMAs. A decisive break would send GBP/JPY plummeting towards the lower trend line of the ascending triangle around 158.18.
On the other hand, if GBP/JPY recovers to 161.80, it will open the door to challenge 162.00.
GBP/JPY 4-hour chart
GBP/JPY Key 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.
