#GBPJPY @ 172.633 Tech stock advancement creates mixed investor sentiment, allowing to sustain gains. (Pivot Orderbook analysis)

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• Tech stock advancement creates mixed investor sentiment, allowing GBP/JPY to sustain gains.
• GBP/JPY upward trend continues, eyeing potential reversal upon Bank of Japan’s policy shifts.
• In case of a dip below 172.00, GBP/JPY could test the two-week low of 171.19 and further the 170.00 mark.

The pair currently trades last at 172.633.

The previous day high was 172.8 while the previous day low was 171.24. The daily 38.2% Fib levels comes at 172.2, expected to provide support. Similarly, the daily 61.8% fib level is at 171.83, expected to provide support.

GBP/JPY edges high but fell shy of reaching a new year-to-date (YTD) high above 172.79 and remains in positive territory, albeit a mixed sentiment amongst investors, as tech stocks advance. Consequently, safe-haven peers like the Japanese Yen (JPY) retraced some of their earlier gains sustained in the Asian session. At the same time, inflation data from the United Kingdom (UK) justifies the need for further tightening, underpinning Sterling (GBP). At the time of writing, the GBP/JPY is trading at 172.46.

From a daily chart perspective, the GBP/JPY uptrend would continue before fundamental reasons change, like the Bank of Japan (BoJ) shifting its monetary policy, could open the door for a good reversal. Nevertheless, once the GBP/JPY falling wedge was broken to the upside, and Cable regained momentum above the May 2 high of 172.33, that opened the door for further gains. Since then, the GBP/JPY consolidated at 171.20-172.79 as buyers prepared to launch an assault and hit the falling-wedge measured target at 174.30.

Hence, the GBP/JPY path of least resistance is upwards. The first line of defense for GBP/JPY sellers would be the YTD high of 172.79, which is broken; the pair will move upwards and test 173.00. A breach of the latter will expose the 174.00 figure, ahead of the falling-wedge objective at 174.30.

On the flip side, if GBP/JPY slips below 172.00, that could pave the way to test the latest two-week low of 171.19 before testing the 170.00 mark. If GBP/JPY dives below that level, the 20-day Exponential Moving Average (EMA) could cap the downfall at around 170.65.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 172.58 at the time of writing. Pair opened at 172.46 and is trading with a change of 0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 170.52, 50 SMA 166.76, 100 SMA @ 163.78 and 200 SMA @ 164.07.

The previous day high was 172.8 while the previous day low was 171.24. The daily 38.2% Fib levels comes at 172.2, expected to provide support. Similarly, the daily 61.8% fib level is at 171.83, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 171.53, 170.6, 169.97
• Pivot resistance is noted at 173.09, 173.72, 174.65

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