GBPJPY Stays Constrained Beneath 142.00 Level As COVID-19 Fears in the UK Weigh On

GBPJPY Stays Constrained Beneath 142.00 Level As COVID-19 Fears in the UK Weigh On

GBPJPY Price Analysis – January 24

GBPJPY is confronted with sellers’ pressure as it stays constrained beneath 142.00 level and exited the prior session at around the 141.96 marks. The pair dumps after being weighed by the ongoing uncertainty about COVID-19 resurgence adding negative pressure to the pound sterling.

Key Levels
Resistance Levels: 147.95, 144.95, 142.71
Support Levels: 140.31, 138.00, 137.00
GBPJPY Long term Trend: Ranging
In light of the recent price action, GBPJPY is expected to face important support in the 141.21/141.00 range. The price action has so far left a wick that on the daily time frames would be expected to be filled in by a bearish price plunge towards 141.51 level.

In the larger context, the increase from the 123.99 level is seen as a rising phase of the sideway ranging trend from 122.75 (low) level. As long as the 147.95 resistance level holds, an eventual downside breakout stays in consideration. However, a firm breach of the 147.95 level may increase the chance of long term bullish reversal.
GBPJPY Short term Trend: Bullish
As seen in the 4-hour timeframe, the GBPJPY bounced strongly last week but failed to break through the resistance level of 140.71. Initial sentiment remains neutral this week. On the other hand, a solid breach of 140.71 could initiate a rough bounce off 139.47 to retest the high of 141.71.

On the other hand, a breach of 138.00 could initially reverse the downtrend for the 137.00 support. However, bears are less likely to enter unless they witness a clear breach beneath the ascending trendline support and confluence around 139.00.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.