#GBPJPY @ 161.802 -imp levels: seesaws around the 161.70 area, failing to reach the head-and-shoulders 161.00 target.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBP/JPY seesaws around the 161.70 area, failing to reach the head-and-shoulders 161.00 target.
• The GBP/JPY 1-hour chart portrays that the head-and-shoulders is still in play, so bears are pilling around further GBP/JPY rallies.

The pair currently trades last at 161.802.

The previous day high was 162.84 while the previous day low was 161.64. The daily 38.2% Fib levels comes at 162.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 162.38, expected to provide resistance.

The GBP/JPY is trading almost flat during the Asian Pacific session after Monday’s price action formed a doji, meaning that neither buyers nor sellers are in control. On Tuesday, the AUD/JPY is trading at 161.76, up by 0.03%.

The daily chart is neutral-to-downward biased, with the exchange rate below the 20, 50, and 100-day EMAs. GBP/JPY traders should be aware that price action formed a successive series of lower highs and lows for four consecutive days, sliding steadily. However, the average daily range (ADR) shrank to 110-130 pips a day, meaning that the pair is about to see high volatility levels, which could send the pair towards the 200-day EMA at 158.93.

The GBP/JPY on the hourly scale had not fulfilled the head-and-shoulders target of 161.00, falling short on Monday, when it reached the 161.15 daily low. Since then, the cross bounced off towards the 161.70 area, where the 20-hour EMA lies, in confluence with the daily pivot point. Therefore, a break above will expose the GBP/JPY to higher prices, which is not likely to happen due to the Relative Strength Index (RSI) being in negative territory with a 47.22 reading, aiming lower.

Therefore, the GBP/JPY path of least resistance is downwards, and its first support would be the August 22 low at 161.15. The break below will expose the head-and-shoulders target at 161.00, followed by the S2 daily pivot at 160.43, followed by the August 15 daily low at 160.08.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 161.76 at the time of writing. Pair opened at 162.02 and is trading with a change of -0.15 % .

The pair is trading below its 20 Daily moving average @ 162.72, below its 50 Daily moving average @ 163.76 , below its 100 Daily moving average @ 163.11 and above its 200 Daily moving average @ 158.91

The previous day high was 162.84 while the previous day low was 161.64. The daily 38.2% Fib levels comes at 162.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 162.38, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 161.49, 160.96, 160.29
• Pivot resistance is noted at 162.7, 163.37, 163.9

[/s2If]
Join Our Telegram Group