GBPJPY Upside Bias Attracts Buyers Within a Tight Range at 137.50 Key Level

GBPJPY Price Analysis – November 22

The GBPJPY is stuck within a tight range after recovering from early selling pressure during the prior trading day at 137.50 level. The cross was last seen trading with modest daily gains, around the 137.92 regions. GBPJPY drifted higher on the back of encouraging vaccine news and Brexit hopes last week.

Key Levels
Resistance Levels: 144.95, 142.71, 140.31
Support Levels: 137.50, 134.40, 131.75
GBPJPY Long term Trend: Ranging
GBPJPY is on the defensive after its recent drop. A breach beneath 137.00 is anticipated to result in further losses, while a rebound beyond 138.00 could retest horizontal resistance at 140.31 if 139. 74 gives way.

In a broader context, the rally from 123.99 is seen as an upside consolidation sideways trend from 122.75 (low). As long as the resistance level of 147.95 remains, a possible downside breakout remains in effect. However, a sustained breakout of the 147.95 level could increase the likelihood of a long-term bullish reversal.
GBPJPY Short term Trend: Ranging
The decline in GBPJPY last week suggests that the corrective rebound from 133.04 ended at 140.31. Initial sentiment remains neutral this week with another decline anticipated. A breach of the 137.50 level would lead to the 134.40 support level to validate this bearish scenario.

However, on the other hand, a breach of the minor resistance level of 139.74 could reverse the upward trend towards the 140.31 level. Another downside move could increase selling pressure towards the 133.00 bottoms, breaking the upward pattern in the near term.

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