The GBP/JPY currency pair declined sharply on the strong yen. It hit a low of 190.67 yesterday and is currently trading around 191.93. The Potential Reversal Zone (PRZ) is set at 200.20.
Scott Bessent's nomination as Treasury Secretary has changed how markets are behaving. People view his appointment as a positive sign leading to a more careful approach to economic policies and trade. This reduces worries about harsh actions that could upset the markets. As a result, US Treasuries have gone up in value, which has caused yields to fall.
Technical Overview
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major downtrend. The immediate resistance level is at 192.50. If the price breaks this level, it could rise toward 193/193.35/193.80/194.15/194.65/195. Support is at 191.75 and if that fails, the price could drop to 191.75/190.65/190/189.75/188.31.
Indicator Analysis
The CCI and ADX indicators suggest a bearish trend.
Trading Recommendation:
Consider selling on rallies around 192.58-60 with SL around 193.45 and aim for a target price of 190.10.
