GBPJPY Upside Run Dwindles at 143.69 Level As Japanese Yen Stays Strong

GBPJPY Price Analysis – February 3

GBPJPY has been in a declining move over the last couple of days after the upside rally towards the recent high of 144.09 dwindles further beneath 143.69 level as of today’s European session. The market expects further JPY strength which is not due to a negative view on global risk sentiment.

Key Levels
Resistance Levels: 147.95, 145.00, 143.95
Support Levels: 142.71, 140.31, 139.47

GBPJPY Long term Trend: Ranging
In light of the recent price action, GBPJPY is expected to face important support in the 142.26/142.71 band. The price action is, so far, at the time of writing, leaving a wick that on the daily time frames would be expected to be filled in a rebound towards 143.95 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: Ranging
On the 4 hour chart, the price stays capped by the horizontal resistance line on the level at 143.95, while the moving average 5 and 13 crossings are confirming the recent bearish structure. The RSI is moving south beneath its midline region with the price yet to be oversold.

If selling interest persists, immediate support could come from the 143.00 marks. Beneath this line is the retracement level of the up leg 139.47 to 143.95 at 142.71 could come next ahead of the horizontal support at 142.26 levels. Meanwhile, any significant rebound could be seen as a buying opportunity around 143.00.

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