The GBP/JPY pair has demonstrated a strong rebound from the 55-4H EMA level at 194.59, primarily driven by a weak yen. After a decline of nearly 150 pips on the back of a stronger yen, the pair has climbed to a high of 196.16 and is currently trading around 196.14.
Recent price activities suggest that GBP/JPY is finding it challenging to maintain a close above 196, but the intraday outlook remains bullish for now. Market participants are eagerly awaiting comments from BOE Governor Bailey, which could influence future movements.
Technical Overview:
At present, the GBP/JPY holds above the short-term 34 EMA, the 55 EMA (195.04 and 194.78), and the long-term 365 Hull MA (194.87) on the 4-hour chart. Immediate resistance is evident around 196.05; breaking through this level could indicate a continuation of the bullish trend. A rise towards 197.37 (161.8% Fibonacci level), 198, and potentially reaching 200 is achievable. Conversely, immediate support sits at 195.40, and a drop below this threshold could lead the pair toward the 195, 194.50, 194, 193.70, and 192.50 levels.
Indicator Analysis (4-hour chart):
- CCI (50): Bullish
- ADX: Bullish
All indicators confirm an overall bullish trend.
It is recommended to consider buying above 196 with a stop loss around 195.40, targeting takes profit levels of 197.37 or 198.
