- The GBP/JPY cross once again showed some resilience below 200-hour SMA and quickly reversed an early dip to 129.00 neighbourhood, hitting fresh session tops in the last hour.
- The intraday uptick, however, remained capped below the key 130.00 psychological mark, which should act as a key pivotal point and help determine the pair's near-term direction.
Given that the cross on Monday broke below a short-term ascending trend-channel - forming a part of a bearish continuation flag chart pattern - the near-term set-up might have already turned in favour of bearish traders and support prospects for the resumption of the near-term depreciating move.
With technical indicators on the daily chart still holding in the bearish territory, any attempted up-move might still be seen as a selling opportunity in the wake of persistent Brexit-related uncertainties and reviving safe-haven demand for the Japanese Yen amid concerns over the global economic growth.
Sustained weakness below the 129.00 round figure mark will reinforce the near-term bearish outlook and turn the cross vulnerable to head back towards testing the 128.20-128.00 support area before eventually dropping to the 127.00 handle en-route multi-year lows support near the 126.55 region.
On the flip side, decisive move beyond the 130.00 handle might confront fresh supply near the 130.40-50 region, above which the cross is likely to aim towards surpassing the 131.00 handle and challenge the ascending trend-channel resistance - currently near the 131.30-35 region.
GBP/JPY 1-hourly chart
-637024943711313139.png)
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: Next upside target comes at 0.6550
AUD/USD managed well to shrug off the marked advance in the Greenback as well as geopolitical tensions, regaining the area above the 0.6500 hurdle ahead of preliminary PMIs in Australia.
EUR/USD: Further losses now look at 1.0450
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.