Pound Sterling Price Analysis: GBP/JPY Important Resistance Levels
GBP/JPY Price Outlook, Charts and Analysis
- GBP Sterling looking ahead to weekly earning numbers due to release tomorrow.
- GBP/JPY looking to correct higher.
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GBP/JPY – Bears Holding Fire
On June 4 bearish momentum started to fade as support level held. Since then GBP/JPY rallied and tested on Jun 7 the high end of the trading range (136.40 – 137.84), however it failed to close above.
Alongside, the Relative Strength Index (RSI) on Jun 6 abandoned the oversold territory and pushed above 30 reflecting the weakness in the bearish momentum.
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GBP/JPY DAILY PRICE CHART (FEB 24, 2019 – JUnE 10, 2019) Zoomed In
GBP/JPY DAILY PRICE CHART (NOV 10, 2016 – JUnE 10, 2019) Zoomed OUT
Looking at the GBP/JPY daily chart we notice the pair opened today with a gap to the upside, sending the price to trade in a higher trading range (137.84 – 139.00). Therefore, a close above 137.84 suggests more bullishness towards 139.00. A further bullish close above 139.00 could lead the price to rally towards 140.50. However, resistance levels at 139.55 and 140.06 need to be watched closely.
In turn, a close below 137.84 would return GBP/JPY to trade in the same old trading range with a likelihood to trade lower to 136.40. The weekly support levels at 137.55 and 136.99 would be worth monitoring.
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GBP/JPY Four-HOUR PRICE CHART (May 13, 2019- JUN 10, 2019)
Looking at the four- hour chart, on last Friday GBP/JPY pointed lower and created a low at 137.48. Therefore, a break below this threshold could open the door for more bearishness towards the June 6 low at 136.99 and if the selloff continues the bears could push towards the June 4 low at 136.55.
On the flipside, if GBP/JPY breaks above the May 30 high at 138,74 this could send the price to trade higher eying the resistance zone at 139.55 – the May 27 high at 139,64. However, weekly resistance at 139.00 need to be in focus.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.