GBP/JPY remains mildly offered around 167.00 as it jostles with the short-term key hurdles during Friday. In doing so, the cross-currency pair snaps a two-day uptrend but stays on the way to weekly gains.

That said, GBP/JPY currently pokes the resistance-turned-support line from October 31, around 166.90 while reversing from the 200-SMA resistance of 167.22. Also challenging the pair buyers is the horizontal area comprising multiple tops marked since November 28, near 167.50.

From a daily chart perspective, the GBP/JPY is neutral-upward biased, testing the 20-day EMA at 166.61 after bouncing from daily lows around the 100-day EMA at 164.83. Nevertheless, as the daily EMAs remain almost flat and the Relative Strength Index (RSI) and the Rate of Change (RoC) are practically horizontal, it suggests that the pair might consolidate.

It’s worth noting, however, that the sluggish MACD signals and an upward-sloping support line from the last Friday, around 166.60, restrict the GBP/JPY bear’s entry.

Following that, the 165.50 could act as an intermediate halt before directing the pair towards the monthly low near 164.00.

In a case where the GBP/JPY bears keep the reins past 164.00, the previous monthly trough surrounding 163.00 will be in focus.

On the contrary, a clear upside break of the 167.50 resistance will quickly propel the prices toward the one-month-old horizontal resistance zone near 169.00-10.

Should the GBP/JPY buyers manage to cross the 169.10 upside barrier, the odds of their rush toward the late October peak near 172.15 can’t be ruled out.

Short term, the GBP/JPY 1-hour chart illustrates the pair as upward biased. Albeit price action is registering successive series of higher highs/lows, the RSI and the ROC are doing the opposite, portraying a negative divergence.

GBPJPY To Retest The Daily Cycle HH Levels

Dec 10 2022

Stop Loss -1.09%

Holding time 4d8hr

166.751

Entry price

164.940

Stop loss price