- GBP/JPY has continued to rise steadily since the beginning of April after bouncing at the 20-day EMA.
- GBP/JPY Price Analysis: It is neutral-upwards, but downside risks remain below 166.00.
The GBP/JPY is extending its gains to six-consecutive days of gains as the Asian session begins. However, amid a risk-on sentiment, buyers and sellers appeared to be at equilibrium, as shown by Wednesday's price action. As the Asian session begins, the GBP/JPY trades at 166.14, increasing by a minuscule 0.02% gain.
GBP/JPY Price Action
The GBP/JPY remained sideways once it reached a new YTD high of 166.60. The formation of a doji in the daily chart means that neither buyers/sellers remain committed to opening new long/short positions. Nevertheless, the GBP/JPY bias remains intact, tilted upwards. But for a bullish continuation, GBP buyers need to crack the December 20 high at 167.01, posing a threat to test the 168.00 figure.
On the other hand, if GBP/JPY dives beneath 166.00, it would exacerbate a pullback, initially testing the 165.00 mark. Once broken, downside risk remains at the 20-day Exponential Moving Average (EMA), at 163.88, followed by the 163.00 figure.
Oscillator-wise, the Relative Strength Index (RSI), albeit in bullish territory, turned flat, suggesting the pair shifted neutral. On the opposite side, the Rate of Change (RoC), portrays that buying pressure is fading. Therefore, the bias remains neutral upwards, but downside risks remain.
GBP/JPY 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD rises further to test 0.6700 amid softer US Dollar, upbeat mood
AUD/USD is closing in on 0.6700, positively kicking off the new week. Amidst a still-hawkish RBA and a September Fed rate cut-led US Dollar weakness, the Aussie pair stays firm. Markets remain upbeat, despite the Middle East woes and ahead of key Fed events later in the week.
USD/JPY extends correction toward 146.00 amid Fed-BoJ policy divergence
USD/JPY is extending declines toward 146.00 in Asian trading. The pair remains heavy, as divergent policy outlooks between the Fed and the BoJ come to the fore ahead of the Fed Minutes and Powell's speech due later this week.
Gold price trades with mild negative bias above $2,500, bullish potential seems intact
Gold price struggles to capitalize on Friday’s breakout momentum amid a positive risk tone. Fed rate cut bets, along with geopolitical risks, might continue to lend support to the metal. Traders look to FOMC minutes and Fed Chair Powell’s speech this week for a fresh impetus.
Dogecoin whales surge by 50% in 30 days, here’s what this means for DOGE
Dogecoin, the largest meme coin in the crypto ecosystem noted a surge in whale wallet holdings. Data from on-chain intelligence tracker IntoTheBlock show a 50% increase in the count of wallet addresses holding over 10 billion DOGE.
Jackson Hole, Fed minutes and PMI
S&P 500 consolidated sharp Thursday‘s gains called, with still bullish bias. Yet another intraday dip was bought, and we‘re heading to a tighter range week marked by manufacturing and services PMI with Jackson Hole.