GBP/JPY Price Analysis: Dips below 187.00 as ‘dark-cloud-cover’ emerges
|- GBP/JPY drops over 0.50% to 186.32 amid cautious sentiment following Powell's rate cut hints.
- New lower low suggests further possible decline to 185.22, contingent on breaking below current supports.
- Recovery above Tenkan-Sen (186.89) could open path to resistances up to 189.00.
The GBP/JPY finished the North American session in negative territory, down more than 0.50%, after hitting a daily high of 187.61. A risk-off impulse following Federal Reserve Chair Jerome Powell's Sunday interview, in which he emphasized they would likely cut three times and begin to ease policy toward the first half of the year. At the time of writing, the pair exchanges hands at 186.32.
GBP/JPY edged lower on Monday, registering a lower low, which could open the door to test last week’s low of 185.22, but traders must clear the first support level seen at the 186.00 figure. Once cleared, the former would be up next, followed by the Kijun-Sen at 183.83.
Conversely, the pair could resume its uptrend if buyers regained the Tenkan-Sen at 186.89, followed by the 187.00 figure. A breach of the latter will expose the January 19 high at 188.93, followed by the 189.00.
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.