Amid an Offered Tone Surrounding the Yen, GBPJPY Regains Positive Traction

Amid an Offered Tone Surrounding the Yen, GBPJPY Regains Positive Traction

GBPJPY Price Analysis – October 7

The GBPJPY cross soared to new daily highs during the early American session, but lacked any follow-through and stayed underneath the 137.00 marks. The offered tone around the safe-haven Japanese Yen (JPY) prompted the GBPJPY cross to regain positive momentum on Wednesday.

Key Levels
Resistance Levels: 147.95, 142.71, 137.84
Support Levels: 135.74, 133.12, 131.75
GBPJPY Long term Trend: Ranging
From a technical point of view, over the past three days or so, the GBPJPY cross has oscillated in a range and continued to trade beyond the moving average of 5 beyond the level at 136.62.

As long as the level of resistance is 147.95, a potential downside breakout stays in order. The firm breach of the 147.95 marks, moreover, may lift the risk of a bullish reversal in the long term. For validation, the emphasis will then be shifted to a 156.59 resistance level.
GBPJPY Short term Trend: Ranging
As seen in a 4 hour RSI, GBPJPY is losing some major gap. But rebounding from level 133.04 is still in support of continuing to re-test 142.71 high level with 135.00 minor support level intact.

On the downside, however, the decline from 142.71 through 133.04 level to 61.8 percent retracement from 123.99 to 142.71 at 131.75 level is likely to resume the breach of 135.00 level. Further selling may, however, wait for a level of 135.74, covering the lower line of the border.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.