- GBP/JPY picks up bids to reverse the previous day’s retreat from weekly top.
- Three-week-old ascending support line puts a floor under the prices.
- 50-SMA, multiple hurdles since mid-August restrict immediate upside.
- Corrective bounce in yields adds strength to the GBP/JPY rebound but mixed sentiment prods bulls.
GBP/JPY renews intraday high to 184.60 as it reverses the previous day’s pullback from the weekly top heading into Wednesday’s London open. In doing so, the cross-currency pair recovers from a three-week-old rising support line while tracing the Treasury bond yields.
However, sluggish oscillators and multiple technical hurdles toward the north prods the GBP/JPY bulls.
That said, the 50-SMA hurdle of around 184.85 guards immediate upside. However, major attention is on the two-week-long horizontal resistance area surrounding 185.40-50.
Following that, a run-up towards the yearly high marked earlier in the month around 186.80 can’t be ruled out.
On the flip side, a clear break of the stated support line, close to 184.15, will seek validation from the 184.00 round figure before poking the early-month swing high of around 183.25.
Should the quote remain bearish past 183.25, the 61.8% Fibonacci retracement of July 28 to August 22 upside, near 180.30, and the 180.00 round figure, will lure the GBP/JPY sellers.
It’s worth noting that the likely cautious optimism and mixed concerns about the UK may allow the GBP/JPY to grind higher.
GBP/JPY: Four-hour chart
Trend: Limited recovery expected
ADDITIONAL IMPORTANT LEVELS
OVERVIEW |
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Today last price | 184.58 |
Today Daily Change | 0.14 |
Today Daily Change % | 0.08% |
Today daily open | 184.44 |
TRENDS |
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Daily SMA20 | 184 |
Daily SMA50 | 182.8 |
Daily SMA100 | 177.22 |
Daily SMA200 | 169.72 |
LEVELS |
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Previous Daily High | 185.27 |
Previous Daily Low | 184.07 |
Previous Weekly High | 186.77 |
Previous Weekly Low | 183.36 |
Previous Monthly High | 184.02 |
Previous Monthly Low | 176.32 |
Daily Fibonacci 38.2% | 184.53 |
Daily Fibonacci 61.8% | 184.81 |
Daily Pivot Point S1 | 183.92 |
Daily Pivot Point S2 | 183.4 |
Daily Pivot Point S3 | 182.72 |
Daily Pivot Point R1 | 185.12 |
Daily Pivot Point R2 | 185.79 |
Daily Pivot Point R3 | 186.31 |