#GBPJPY @ 168.981 The tumbled 0.17% on Tuesday due to waning GBP demand. (Pivot Orderbook analysis)

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• The GBP/JPY tumbled 0.17% on Tuesday due to waning GBP demand.
• The cross-currency daily chart suggests the GBP/JPY might print a leg-down before resuming its uptrend.
• Short term, the GBP/JPY is upward biased, and if it cleats 169.50, a test of 170.00 is on the cards.

The pair currently trades last at 168.981.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

The GBP/JPY surpasses the previous YTD high of around 168.73 but retraces from daily highs at about 169.80, below its opening price by a minimal 0.19%, despite a risk-on impulse. At the time of writing, the GBP/JPY is trading at 168.89.

Sentiment remains upbeat, with US equities registering gains between 0.90% – 1.14%, while the greenback registers slight losses of 0.03%, as shown by the US Dollar Index. In the FX space, the Japanese yen is the laggard, while the British pound is still appreciating after UK’s U-turn on Liz Truss’s minimal budget.

Given the backdrop, the GBP/JPY is gaining 1.63% so far in the week. The GBP/JPY daily chart portrays the pair as upward biased, but Tuesday’s price action formed a hanging-man candle pattern, meaning that additional downward pressure is expected. Therefore, GBP/JPY key support lies at 167.58, which, once cleared, could send the GBP/JPY sliding toward the October 17 daily low at 166.43.

The GBP/JPY hourly chart is also upward biased, though price action fluctuates above/below the 20-EMA with no clear trend. However, below the exchange rate, the rest of the EMAs suggest that the upside is warranted, but firstly it will need to clear some hurdles on its way north.

Hence the GBP/JPY first resistance would be the 169.00 figure, followed by the R1 pivot at 169.97, ahead of the 170.00 mark.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 169.02 at the time of writing. Pair opened at 169.26 and is trading with a change of -0.14 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 161.67, 50 SMA 162.47, 100 SMA @ 163.37 and 200 SMA @ 160.89.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 166.84, 164.42, 162.8
• Pivot resistance is noted at 170.88, 172.51, 174.93

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