- GBP/JPY falls below 188.00, but remains trading in the green in a risk-on environment.
- A daily close below 188.00 could pave the way for a deeper pullback, 187.00 would be the bears’ target.
- If 188.28 is broken, GBP/JPY would challenge the eight-year high reached at 188.80.
The British pound (GBP) remains stable against Japanese yen (JPY) during Wednesday’s session, after reaching a daily high of 188.24; The pair has fallen below 188.00, courtesy of weak UK inflation data. Therefore, the GBP/JPY pair is around 187.94, virtually unchanged.
From a technical perspective, the GBP/JPY pair is biased higher, but a daily close below 188.00 could pave the way for a deeper pullback, which could extend towards 187.00. If sellers push prices below that level, the next demand zone could be the Tenkan-Sen at 185.75m followed by the Senkou Span A at 185.13. The next support would be 185.00.
On the other hand, GBP/JPY’s uptrend would continue if it holds above 188.00, with first resistance at the current year-to-date high at 188.28. Improving sentiment would bring the November 2015 swing high at 188.80 into play before buyers challenge the 190.00 figure.
GBP/JPY Price Analysis – Daily Chart
GBP/JPY Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
