GBP/JPY forecast: Declines to 195.50 due to bearish technical setup.
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Gbp/Jpy extends its losses, trading near 195.80 during early european hours on thursday. technical indicators on the daily chart suggest a bearish bias, with the pair moving within a descending channel pattern.
Momentum indicators reinforce bearish outlook The 14-day relative strength index (rsi) remains below the neutral 50 level, signaling continued downward momentum. additionally, the nine-day exponential moving average (ema) is positioned below the 14-day ema, highlighting persistent weakness in short-term price momentum.
Support levels
the pair approaches the lower boundary of the descending channel at the 193.50 level, a critical support zone. a break below this level could intensify selling pressure, potentially driving the pair towards the two-month low at 189.56, last seen on september 30.
Resistance levels
On the upside, initial resistance is seen at the nine-day ema at 196.46, followed by the 14-day ema at 196.63. further gains could face stiff resistance at the upper boundary of the descending channel at 197.70. a break above this boundary may signal a reversal in sentiment, potentially enabling the pair to retest the four-month high at 199.81, achieved on october 30.
Gbp price performance today
The pound remains subdued against its major peers. the gbp/jpy cross shows the weakest performance, down 0.37%. other notable movements include minor gains against the usd (up 0.06%) and eur (up 0.01%), but losses against the cad (down 0.04%) and aud (down 0.16%).
Outlook
while the gbp/jpy cross is under pressure, the direction will depend on its ability to hold above the 193.50 support level. a decisive break below this level could deepen losses, while a recovery above 196.63 would be required to challenge the descending channel's upper boundary at 197.70 and negate the bearish outlook.
Momentum indicators reinforce bearish outlook The 14-day relative strength index (rsi) remains below the neutral 50 level, signaling continued downward momentum. additionally, the nine-day exponential moving average (ema) is positioned below the 14-day ema, highlighting persistent weakness in short-term price momentum.
Support levels
the pair approaches the lower boundary of the descending channel at the 193.50 level, a critical support zone. a break below this level could intensify selling pressure, potentially driving the pair towards the two-month low at 189.56, last seen on september 30.
Resistance levels
On the upside, initial resistance is seen at the nine-day ema at 196.46, followed by the 14-day ema at 196.63. further gains could face stiff resistance at the upper boundary of the descending channel at 197.70. a break above this boundary may signal a reversal in sentiment, potentially enabling the pair to retest the four-month high at 199.81, achieved on october 30.
Gbp price performance today
The pound remains subdued against its major peers. the gbp/jpy cross shows the weakest performance, down 0.37%. other notable movements include minor gains against the usd (up 0.06%) and eur (up 0.01%), but losses against the cad (down 0.04%) and aud (down 0.16%).
Outlook
while the gbp/jpy cross is under pressure, the direction will depend on its ability to hold above the 193.50 support level. a decisive break below this level could deepen losses, while a recovery above 196.63 would be required to challenge the descending channel's upper boundary at 197.70 and negate the bearish outlook.