GBP/JPY Price Action: Struggles at 183.00 and dives to the top of Ichimoku Cloud
|- GBP/JPY was unable to extend its gain, forming a bearish harami candlestick pattern.
- Despite being neutral, a drop inside the Kumo, and the pair could resume its downtrend.
- Buyers reclaiming a three-month-old resistance trendline could open the door to test YTD high.
Price action in the GBP/JPY remains constrained ahead of the Bank of England’s (BoE) monetary policy decision on Thursday. Although the pair has broken above the Ichimoku Cloud (Kumo), downside risks remain. At the time of writing, the cross-pair is trading at 182.94, down 0.28%.
The daily chart portrays the cross pair as neutral biased, despite breaching the Kumo. For a bullish resumption, buyers must lift the exchange rates above 185.00, breaking a three-month-old resistance trendline that passes at around that level. Once cleared, that would open the path towards the year-to-date (YTD) high at 188.80.
On the other hand, if sellers stepped in and dragged prices inside the Kumo, the pair could resume its downtrend. Key support level lies at 181.99, the bottom of the Kumo, followed by the December 11 low of 181.60. Once it drops below that level, the 180.00 mark would be up for grabs.
GBP/JPY Price Action – Daily Chart
GBP/JPY Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.