Key Points: -
- The decline in GBP/JPY comes to a halt, suggesting a potential upward bias as indicated by a bullish harami two-candlestick pattern.
- The presence of pin-bar candles and two consecutive negative sessions exert downward pressure on GBP/JPY, resulting in a drop below the 181.00 level.
- In order to continue the bearish momentum, GBP/JPY needs to surpass 180.36. Conversely, breaching the Tenkan-Sen at 181.52 may indicate a bullish trend resumption.
Today's Scenario: -
The GBP/JPY pair is showing marginal gains as the Asian session commences, with an increase of 0.04% compared to the previous session. Tuesday's trading saw weakness in the Pound Sterling (GBP) for the majority of the day. However, the Japanese Yen (JPY) faced pressure due to dovish remarks made by the Bank of Japan (BoJ) Governor Kazuo Ueda. As of the time of writing, the GBP/JPY pair is trading at 180.99.
Diagram of GBP/JPY: -
Economic Events: -
Buy Scenario: -
On the upside, the first resistance level at 182.16 is identified as an overlapping resistance level, coinciding with a 61.80% Fibonacci retracement level. This level could act as a barrier to any further upward movement in the price.
Furthermore, the second resistance level at 183.01 is also seen as an overlapping resistance, aligning with a 78.60% Fibonacci retracement level and a -27% Fibonacci expansion level. This suggests a potential Fibonacci confluence, which may add to the strength of the resistance at this level. Till we do not advise to buy GBP/JPY.
Sell Scenario: -
The GBP/JPY chart currently shows a bearish overall momentum, as indicated by the price being below the bearish Ichimoku cloud. This suggests the potential for a continuation of the bearish trend towards the first support level.
The first support level at 180.16 is significant as it corresponds to a previous low point in the price, indicating a level where buyers may step in and provide support. Additionally, the second support level at 179.72 also represents a swing low support, further reinforcing its importance as a potential area of buying interest. Till we do not advise to sell GBP/JPY.
Support and Resistance Level: -
S1 180.28 - R1 181.77
S2 179.58 - R2 182.55
S3 178.80 - R3 183.25