The GBPJPY pair remains at its highest levels in a repetitive pattern close to the 186.30 region.

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• GBP/JPY continues to trade in cycle highs near the 186.30 area.

The pair currently trades last at 185.754.

The previous day high was 186.35 while the previous day low was 184.7. The daily 38.2% Fib levels comes at 185.72, expected to provide support. Similarly, the daily 61.8% fib level is at 185.33, expected to provide support.

On Thursday, the GBP/JPY fell below 186.00 as investors seemed to be taking profits after eight straight days of gains. On the one hand, the Pound gains interest in hawkish bets on the Bank of England (BoE), while the Bank of Japan’s (BoJ) extremely dovish stance continues to pressure the JPY. Eyes on Japanese inflation figures from July to be reported on Friday.
The GBP continues to trade strong against its rivals, mainly driven by rising wages in the UK and hot inflation figures from July reported in Wednesday’s session. In that sense, the Pound gained interest on the back of hawkish bets on the Bank of England (BoE) as investors are now betting on a terminal rate of 6% which would mean an additional 75 bps of tightening vs last week where markets expected a terminal rate of 5.75%.

On the other hand, Japan reported soft data. Imports dropped in July by 13.5% and reported a higher than expected Trade Balance Deficit in the same month. In addition, Machinery Orders declined by 5.8% YoY in June, higher than expected. In that sense, as economic activity continues to weaken, the Bank of Japan (BoJ) won’t have any rush to pivot its monetary policy, which will leave the JPY vulnerable against its rivals.

The daily chart analysis indicates a bullish outlook for the GBP/JPY in the short term. The Relative Strength Index (RSI) is above its midline in positive territory, with a positive slope, aligning with the positive signal from the Moving Average Convergence Divergence (MACD), which displays green bars, reinforcing the strong bullish sentiment. Additionally, the pair is above the 20,100,200-day SMAs, suggesting that the bears struggle to challenge the bullish trend.

Plus, bullish signals on the four-hour chart indicate a strong buying momentum, establishing a marked bull dominance over sellers.

Support levels: 185.50, 185.00, 184.00.

Resistance levels: 187.00, 187.50, 188.00.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 185.87 at the time of writing. Pair opened at 186.33 and is trading with a change of -0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 182.41, 50 SMA 181.55, 100 SMA @ 175.37 and 200 SMA @ 168.87.

The previous day high was 186.35 while the previous day low was 184.7. The daily 38.2% Fib levels comes at 185.72, expected to provide support. Similarly, the daily 61.8% fib level is at 185.33, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 185.24, 184.14, 183.58
• Pivot resistance is noted at 186.89, 187.45, 188.54

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