Bulls Restrained on GBPJPY Near Term Outlook, Targets 142.71 Highs and Beyond

GBPJPY Price Analysis – January 27

The GBPJPY pair is moving into the sellers’ region while upside bias stays restrained in the near term, yet it targets 142.71 highs and beyond. The UK’s vaccine campaign continues at full speed, but it is unclear if the lockdown will be easing.

Key Levels
Resistance Levels: 147.95, 144.95, 142.71
Support Levels: 141.21, 139.47, 137.00
GBPJPY Long term Trend: Ranging
The GBPJPY pair has already rebounded from the prior day’s low of 141.28 to 142.65 levels as of today’s session and stays restrained. Nonetheless, the horizontal resistance level currently around 142.71, followed by the 144.95 thresholds will challenge the GBPJPY bulls’ advance. However, bears are less likely to enter unless witnessing a clear breach beneath the moving average 13 around 141.70 level.

In the larger context, the increase from the 123.99 level is seen as an advancing phase of the sideway range trend from the 122.75 (low) level. As long as the 147.95 resistance level holds, an eventual downside breakout stays in consideration. Nevertheless, the eventual breach of 147.95 may increase the likelihood of long term bullish reversal.
GBPJPY Short term Trend: Ranging
Currently, as seen on the 4-hour chart, the technical oscillators are keeping the bias skewed to the downside. The moving averages 5 and 13 in the positive area and is rising further, while the RSI is pointing marginally down above the 50 levels. The short term bias in GBPJPY stays neutral for consolidations in the range of 140.31/142.71 levels.

On the downside, the breach of 141.21 level may extend the trend from 142.71 level with a third phase. A steeper plunge would be seen to 139.47 support level next. On the upside, a breach of the 142.71 level may invalidate this view and extend the rebound from the 137.00 level. With the repeated rebound from the strong supports, GBPJPY buyers may wait for validation of the channel breakout, with a sustained breach beyond the 142.71 level.

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