- GBP/JPY resumed its downtrend once GBP bulls failed to break the double bottom neckline.
- A bearish market mood fueled demand for haven assets, including the yen.
- GBP/JPY Technical Outlook: The downtrend has resumed and will accelerate if a daily close below 152.00 is achieved.
The GBP retreats from weekly highs amid market risk aversion as Russian and Ukrainian foreign ministers reported no progress in negotiations. At the time of writing, the GBP/JPY pair is trading at 152.13 in the American session.
Market sentiment on Thursday is bearish as the conflict between Russia and Ukraine weighs on risk appetite. On Wednesday, the positive mood was missing the news confirming a truce or ceasefire between the two countries. Furthermore, Russia and Ukraine are still sticking to their initial demands, so presumably the conflict would escalate as no one wants to give in to their needs.
GBP/JPY overnight oscillated around the 152.29-153.00 range, above 152.94 where the double bottom neckline is located. However, GBP/JPY resumed its downside bias once market sentiment changed when it was reported that Russian-Ukrainian discussions in Turkey did not meet investors’ expectations, thus GBP/JPY fell around 152.00.
GBP/JPY Price Forecast: Technical Outlook
GBP/JPY is skewed to the downside as shown on the daily chart and fails at the neckline as mentioned on Wednesday: “GBP/JPY neckline is at 152.94 and would be a resistance level problematic for GBP bulls to overcome due to increased selling pressure linked to the double top”, triggered a 100 pip move lower, below 152.00.
That said, the first GBP/JPY support would be the March 8 daily low at 150.97. A break of the latter would expose crucial support levels from last year, led by the Dec 20 low at 149.60, followed by the Dec 3 low at 148.97 and the double top target at 148.00.
Additional technical levels
Source: Fx Street
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