#GBPJPY @ 160.271 nosedived to fresh 4-month lows below 160.00, though buyers reclaimed the 160.00 figure. (Pivot Orderbook analysis)

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• GBP/JPY nosedived to fresh 4-month lows below 160.00, though buyers reclaimed the 160.00 figure.
• A decisive break below 160.00 could pave the way towards 158.00; otherwise, a re-test of 161.00 is on the cards.

The pair currently trades last at 160.271.

The previous day high was 163.95 while the previous day low was 162.24. The daily 38.2% Fib levels comes at 162.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.3, expected to provide resistance.

The GBP/JPY slightly advanced, following Thursday’s volatile session, after the Bank of Japan (BoJ) decided to hold rates unchanged but intervene in the FX market, sending the USD/JPY tumbling from around 145.90 to 140.34 after emphasizing that the Japanese yen weakness, was not aligned with fundamentals. Consequently, the GBP/JPY dropped 1.34% on Thursday, but at the time of writing is trading at 160.25, up 0.05%.

The GBP/JPY price action illustrates the pair tumbling below the 200-day EMA, hitting a fresh four-month-low at around 159.12; buyers stepped in and reclaimed the previously-mentioned 200-day EMA at 160.27. Traders should note that the Relative Strength Index (RSI) fell below the midline, extending its fall towards the 36.46 reading, suggesting that sellers are in charge. Therefore, the GBP/JPY is downward biased. Once it clears the 200-day EMA, a re-test of the 159.00 area is on the cards.

In the short term, the 4-hour chart illustrates that the GBP/JPY reached the head-and-shoulders chart pattern target at around 161.50; the downtrend extended towards the four-month low before recovering to 160.00. Nevertheless, the GBP/JPY bias shifted downwards, further cemented by the cross of the 20-EMA below the 200 one.

Therefore, the GBP/JPY’s first support would be the 160.00 psychological price level. The break below will expose the four-month low at 159.12, followed by 159.00, ahead of the S1 daily pivot at 158.07.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 160.26 at the time of writing. Pair opened at 162.34 and is trading with a change of -1.28 % .

The pair is trading below its 20 Daily moving average @ 163.54, below its 50 Daily moving average @ 163.27 , below its 100 Daily moving average @ 163.07 and above its 200 Daily moving average @ 160.24

The previous day high was 163.95 while the previous day low was 162.24. The daily 38.2% Fib levels comes at 162.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.3, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 161.73, 161.13, 160.02
• Pivot resistance is noted at 163.44, 164.55, 165.16

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