GBP/JPY Price Analysis: Oscillates around 162.00 on risk-off impulse
|- GBP/JPY remains positive in the week, up by 0.32%, despite falling in the last couple of days.
- The cross-currency failure to crack the 200-EMA in the 4-hour chart will exacerbate a fall toward 160.00.
The GBP/JPY extended its losses amid worries that a Fed dovish pivot should be put on a drawer, with US economic data giving mixed signals ahead of a crucial US employment report on Friday. Therefore, sentiment shifted sour as US equities finished with substantial losses. At the time of writing, the GBP/JPY is trading at 162.05, testing the confluence of several DMAs.
GBP/JPY Price Forecast
From a daily chart perspective, the GBP/JPY is testing a busy area, with the 20 and 50-day EMAs hoovering around the 162.05-18 region. Notably, the GBP/JPY tumbled below the 100-day EMA, exacerbating a fall toward the daily low of 161.08. Nevertheless, buyers stepping in around the 161.00 figure trimmed some of Thursday’s losses, trying to achieve a daily close above important DMAs.
Near-term, the GBP/JPY four-hour chart portrays the pair as neutral-to-downward biased due to the cross falling below the 20 and the 200-EMAs. At the time of typing, the GBP/JPY is testing the 200-EMA at 162.13, which, once cleared, could open the door for a rally toward the 20-EMA at 163.90.
Nevertheless, the path of least resistance is downwards, so failure to crack the 200-EMA will expose essential support levels. Therefore, the GBP/JPY first support will be the 142.00 mark. A breach of the latter will expose the confluence of the S2 and the 100-EMA at 161.12, followed by the 50-EMA at 160.22.
GBP/JPY Additional 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.