Source: PaxForex Premium Analytics Portal, Technical Insight
Even though the cross-currency pair printed six days of gains, the GBP/JPY needs to clear September’s high at 167.94 to cement its upward bias. GBP/JPY traders should be aware that the Relative Strength Index (RSI) shifted from aiming upwards to flat, suggesting buyers’ exhaustion. Therefore, as buyers get a respite, the GBP/JPY might correct lower to challenge the YTD high at 168.73.
GBP/JPY,D1
Pivot: 164.95
Analysis:
As long as the price is above 160.65 follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 164.95
- Take profit 1: 167.04
- Take Profit 2: 170.00
Alternative scenario:
If the level of 160.65 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 160.65
- Take profit 1: 159.50
- Take profit 2: 157.90
Comment:
RSI indicates the potential for an uptrend in the medium term.
Key levels:
| Resistance | Support |
| 171.00 | 160.65 |
| 170.00 | 159.50 |
| 167.40 | 157.90 |
