GBPJPY Attempts to Break Lower Trading Range, Stays Beneath 137.00 Level

GBPJPY Price Analysis – June 10

GBPJPY declines to level 136.65 within Wednesday’s European session. While doing so, the pair aims to break roughly 60 pips of the trading range established since the previous day’s mid-US session amid slightly risk-averse markets. Similarly, the Japanese foreign minister’s remarks, indicating no border opening with China just yet, are already an extra harmful to the risks.

Key levels
Resistance Levels: 147.95, 144.95, 139.74
Support Levels: 135.76, 129.29, 122.75
GBPJPY Long term Trend: Ranging
The collapse of the pair beneath the key level of 137.00, currently below the moving average of 5, seems to drag it beyond the moving average and around 135.76 to the near-term support level. Alternatively, level 138.68 may offer an extra upside barrier beyond the moving average 5 during the FX pair’s rebound.

As long as resistance level 147.95 holds, there remains an eventual downside breakout in favor. But a strong 147.95-level breach may increase the chance of a long-term bullish reversal. Validation of the emphasis will then be switched to a resistance level of 156.59.
GBPJPY Short term Trend: Ranging
In GBPJPY, the intraday bias stays first neutral. A further increase is predicted as long as it maintains the support level of 135.76. A breach of 139.74 level may stretch the expansion from 123.99 level to a 100% projection of 123.99 to 135.76 at 141.24 levels, from 129.29 level.

That being said, for the low test of the horizontal support level at 133.45, a strong breach of 135.76 level may suggest short term topping and switch bias to the downside.

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