GBP/JPY Price Analysis: Outlook turns positive, supported by a bullish engulfing pattern

GBP/JPY rises and trades above the 20 and 50-day EMAs, reflecting a gain of 1.18%.
The pair formed a bullish engulfing candle pattern, with oscillators favoring the upside in the daily chart.
GBP/JPY Price Analysis: In the short term might test 160.00 unless buyers reclaim 162.00.

Christian Borjon Valencia FXStreet

GBP/JPY pops after three days of losses, and trades above the 20 and 50-day Exponential Moving Averages (EMAs), sitting at 161.54 and 161.59, respectively. After hitting a daily low of 159.56, the GBP/JPY is trading at 161.68, gaining 1.18%.

GBP/JPY Price Analysis

Friday’s price action portrayed a hammer preceded by a downtrend, meaning that the GBP/JPY might print a leg-up. On Monday, the GBP/JPY resumed its uptrend, forming a bullish engulfing candle pattern, favoring the upside in the cross-currency pair. The Relative Strength Index (RSI) also shifted bullish, while the Rate of Change (RoC) jumped from neutral.

From an intraday perspective, the GBP/JPY 4-hour chart portrays the pair as neutral to downward biased facing the confluence of the 100 and 200-EMAs, around 161.52/58. A decisive break and the GBP/JPY could rally to 162.00, followed by the R2 daily pivot point at 162.22. Upside risks lie at a 5-month-old downslope trendline at around 162.50-60, followed by a March 23 daily high test at 163.33.

On the other hand, and the GBP/JPY path of least resistance in the near term, the first support would be the 50-EMA at 161.14, immediately followed by the R1 daily pivot at 161.01. Once hurdle, the pair might fall to the 20-EMA at 160.78, followed by a dip to the central pivot at 159.63.

GBP/JPY 4-Hour chart

GBP/JPY Technical levels

GBP/JPY

Overview
Today last price	161.66
Today Daily Change	1.76
Today Daily Change %	1.10
Today daily open	159.9

Trends
Daily SMA20	162.26
Daily SMA50	161.05
Daily SMA100	162.53
Daily SMA200	163.25

Levels
Previous Daily High	160.86
Previous Daily Low	158.27
Previous Weekly High	163.34
Previous Weekly Low	158.27
Previous Monthly High	166.01
Previous Monthly Low	156.73
Daily Fibonacci 38.2%	159.26
Daily Fibonacci 61.8%	159.87
Daily Pivot Point S1	158.49
Daily Pivot Point S2	157.09
Daily Pivot Point S3	155.91
Daily Pivot Point R1	161.08
Daily Pivot Point R2	162.26
Daily Pivot Point R3	163.67

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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