GBP/JPY Price Analysis: Sellers remain hopeful around 159.00 as buyers stalled at the 20-DMA
- The GBP/JPY finished Thursday’s session with minuscule losses of 0.01%.
- GBP/JPY Price Analysis: Subdued, but once 159.00 is cleared, further downside is expected; otherwise, breaks above the 20-DMA, the uptrend will resume.
The GBP/JPY recovered from earlier losses and finished Thursday’s session with minuscule gains after plummeting to daily lows of 157.56. However, the GBP/JPY stages a comeback and is set to finish the gains almost flat. As the Asian Pacific session begins, the GBP/JPY is trading at 159.04.
GBP/JPY Price Analysis: Technical outlook
The daily chart shows that the GBP/JPY remains neutral-to-downward biased but trendless during the last seven days. Even though the GBP/JPY was hit by a jump in volatility, on the Bank of Japan’s decision, the exchange rate settled at around Thursday’s close.
Oscillators like the Relative Strength Index (RSI), although its slope is almost flat at bearish territory, while the Rate of Change (RoC) suggests that buying pressure is fading. Therefore, the GBP/JPY might continue to be range-bound unless it clears the first support/resistance levels.
The GBP/JPY, the first support level, would be the 159.00 psychological level. Once cleared, the next support would be the 158.00 figure, followed by the January 19 daily low of 157.56. As an alternate scenario, and the least likely, the GBP/JPY first resistance would be the 20-day Exponential Moving Average (EMA) at 159.54, followed by 160.00 and then the January 18 daily high of 161.52.
GBP/JPY Key Technical Levels