GBP/JPY Faces Key Resistance - British Pound vs Japanese Yen Price Forecast
GBP/JPY Technical Analysis
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GBP/JPY- Bullish Development
On Oct 17, uptrend momentum led the price to multi-month high then paused after. This caused a sideways move for nearly three weeks. On Wednesday, buyers resumed bullish price action and yesterday, the pair rallied to 143.25 – its highest level in nearly seven months.
This week, the Relative Strength Index (RSI) rose from 60 to 70 emphasizing the strength of bullish momentum at this stage.
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GBP/JPY Daily PRice CHART (Nov 20, 2017– DEC 6, 2019) Zoomed Out
GBP/JPY Daily PRice CHART (April 23 – DEC 6, 2019) Zoomed In
From the daily chart, we notice on Nov 28 GBP/JPY moved to a higher trading zone 140.62 - 143.09. Yesterday, the price rallied above the zone then closed below the high-end reflecting buyer’s reluctance to continue sending the price higher.
Today, buyers resumed exiting the market and this led the price to decline slightly. More taking profits operations could reverse the price’s direction towards the low end of the zone. A close below 140.50 could open the door for sellers to take charge and press towards 139.00. Although, the weekly support level and area marked on the chart should be considered as they offer an attractive exit points for sellers.
That said, any close above 143.19 could embolden more market’s participants to push towards the vicinity of 144.80-94. Nevertheless, the weekly resistance level underlined on the chart should be monitored.
GBP/JPY Four Hour PRice CHART (Oct 16 – DEC 6, 2019)
Looking at four-hour chart, we notice yesterday, the price tested above 143.20 however, closed below on the back of some buyers took profit.
A break below 142.00 handle could send GBPJPY towards 141.51. Although, the daily support level underscored on the chart should be watched closely. On the other hand, a break above 143.60 could resume bullish price action towards 144.13. In that scenario, buyers could face resistance at the level underlined on the chart should be kept in focus.
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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.