- GBP/JPY is set to finish the week with decent losses of 1.28%.
- From a daily chart perspective, the cross-currency GBP/JPY shifted to neutral biased.
- Short term, the GBP/JPY is about to hit 162.30. the head-and-shoulders target.
The GBP/JPY drops for the four consecutive trading session, down by 0.86% on Friday, after Wall Street finished the last trading day with losses between 0.45% and 0.90%, spurred by a dismal sentiment. In the FX complex, safe-haven peers rose, except for the greenback, which finished unchanged. At the time of writing, the GBP/JPY is trading at 163.24, as Wall Street’s close.
GBP/JPY Price Analysis: Technical outlook
From a daily chart perspective, the GBP/JPY is neutral biased, after sliding below the 55-day EMA. It’s worth noting that the cross, tumbled below the August 17 daily low at 163.55, opening the door for further losses. Even though, the GBP/JPY reached a daily low at around 162.73 and failed to stick below 163.00, the bias shifted to neutral-downwards.
Short term, the GBP/JPY four-hour scale depicts the cross-currency pair formed a head-and-shoulders chart pattern, which targets a drop towards 162.30, as measured from head-to-the-neckline chart pattern. On Friday, the GBP/JPY tumbled from around 164.50, and reached a daily low at 162.73, shy of the target. Nevertheless, the GBP/JPY bias remain downwards, so it might reach the head-and-shoulders target, in the near term.
Therefore, the GBP/JPY first support would be the 163.00 psychological level. A breach of the latter will expose the September 16 cycle low at 162.73, followed by the head-and-shoulders target at 162.30.
GBP/JPY Key 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 holds the uptick above 0.6450 after mixed Chinese data
AUD/USD is holding higher ground above 0.6450 in Friday's Asian trading, shrugging off mixed Chinese activity data for October. Traders are looking to cash in after the recent downfall even though the US Dollar stay firm and market mood remains cautious. US data is next in focus.
USD/JPY reverses Japan's GDP-led spike to 156.75
USD/JPY pares gains to near 156.50 in Asian session on Friday, revesing the early spike to 156.75 fuelled by unimpressive Japanese Q3 GDP data. The pair is facing headwinds from Japanese verbal intervention and a tepid risk tone, despite the sustained US Dollar strength.
Gold price extends decline on bullish US Dollar, investors brace for US PPI data
Gold price struggles to gain ground around $2,570 on Friday after bouncing off a two-month low in the previous session. The precious metal remains under selling pressure amid the strong US Dollar and the rising uncertainty surrounding the Federal Reserve's pace of interest rate reductions.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the early Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.