GBP/JPY Price Analysis: Renews weekly low past 183.00 on rising wedge confirmation, ignores strong yields
|- GBP/JPY eyes the biggest daily loss in a week after confirming bearish chart formation, pressured around intraday low of late.
- US 10-year, two-year Treasury bond yields refresh three-month high amid hawkish Fed bets, recession woes.
- Theoretical target of 180.90 can prod GBP/JPY bears on their way to 180.00 psychological magnet.
- Bulls have a long road to travel before retaking control, 184.00 is the key.
GBP/JPY takes offers to refresh the weekly low around 182.70 heading into Thursday’s London open. The cross-currency pair's latest weakness could be linked to the market's risk-off mood. However, the firmer yields should have prod the quote of late.
Also read: Asian stocks drop as S&P500 Futures slide to 4,470, US Treasury bond yields refresh three-month high
In doing so, the cross-currency pair justifies the previous day’s confirmation of the one-week-old rising wedge bearish chart pattern. Additionally favoring the pair sellers is the quote’s sustained break of the 200-Hour Moving Average (HMA), as well as the bearish MACD signals.
That said, the GBP/JPY becomes vulnerable to testing the rising wedge’s theoretical target of around 180.90. However, the late June swing high near 181.50 and the 180.00 round figure are extra filters toward the south that gain the market’s attention.
Meanwhile, the June 20 swing low of around 179.90 appears the last defense of the short-term GBP/JPY buyers.
On the flip side, 200-HMA and the bottom line of the aforementioned wedge limit short-term recovery of the GBP/JPY pair around 183.10 and 183.20 in that order.
Following that, an upward-sloping support line from June 21 and the stated wedge’s top line, respectively near 183.50 and 184.05, can challenge the GBP/JPY buyers before giving them control.
GBP/JPY: Hourly chart
Trend: Further weakness expected
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.