The GBP/JPY retraces from YTD highs at 172.13 and tumbles for the second-straight day due to a risk-off impulse, but also traders booking profits in the GBP/USD ahead of the Federal Reserve’s policy decision on Wednesday. Hence, the GBP/JPY is trading at 170.09, below its opening price by 0.19%.
From a daily chart perspective, the GBP/JPY remains upward biased, even though a rising wedge is forming, nearby meaning that GBP/JPY risks are skewed to the downside. If the bearish rising wedge is confirmed, a test of the 200-day Exponential Moving Average (EMA) is on the cards at around 161.58. Otherwise, the GBP/JPY would consolidate in the 169.00-172.00 range, awaiting a fresh catalyst.
The Relative Strength Index (RSI) at bullish territory further confirms the latter. Nevertheless, market sentiment deterioration or if the Bank of England’s (BoE) monetary policy decision disappoints investors, the GBP/JPY might extend its losses below 170.00.
The GBP/JPY hourly chart depicts a neutral-to-bearish biased pair. The EMAs lie above the spot price, except for the 200-EMA at 169.47, the last piece of the domino keeping the GBP/JPY from sliding further. The RSI is at bearish territory, with a downward slope, warranting that sellers are in charge.
Hence, the GBP/JP First support would be the 200-EMA at 169.47, the S2 daily pivot at 169.15, and the 169.00 figure, the October 25 low at 167.83, and the October 24 daily low at 167.58.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.