#GBPJPY @ 169.045 climbs sharply by more than 250 pips on Monday due to fundamental reasons. (Pivot Orderbook analysis)
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- GBP/JPY climbs sharply by more than 250 pips on Monday due to fundamental reasons.
- Negative divergence in the GBP/JPY one-hour chart opens the door for a mean reversion move.
The pair currently trades last at 169.045.
The previous day high was 167.22 while the previous day low was 165.03. The daily 38.2% Fib levels comes at 165.87, expected to provide support. Similarly, the daily 61.8% fib level is at 166.39, expected to provide support.
The GBP/JPY rallies to fresh six-year highs at 170.10 due to investors’ relief on the UK’s newest Finance Minister, Jeremy Hunt, ditching Kwarteng’s mini-budget as he tries to ease the markets. Therefore, the British pound soared against most G8 currencies, particularly the yen, gaining 290 pips. At the time of writing, the GBP/JPY is trading at 169.18.
On Monday, the GBP/JPY surged, extending its gains towards the 170.00 figure, but profit-taking around the area weighed on the pair, retracing toward the 169.00 figure. Worth noting that the GBP/JPY is trading above the previous 2022 high, reached on June 9 at 168.04, so a daily close above it could open the door for consolidation around 169.00-170.00.
Short term, the GBP/JPY one-hour scale price action registered a series of higher highs/lows, emphasizing the upward bias. Of note, the Relative Strength Index (RSI) printed successive series of lower peaks, forming a negative divergence, opening the door for a mean-reversion move.
Therefore, the GBP/JPY first support would be the R2 daily pivot at 168.34. The break below will expose the R1 pivot at 167.28, followed by the 50-EMA at 167.17.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 169.02 at the time of writing. Pair opened at 166.05 and is trading with a change of 1.79 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 169.02 |
| 1 | Today Daily Change | 2.97 |
| 2 | Today Daily Change % | 1.79 |
| 3 | Today daily open | 166.05 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 161.39, 50 SMA 162.34, 100 SMA @ 163.29 and 200 SMA @ 160.83.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 161.39 |
| 1 | Daily SMA50 | 162.34 |
| 2 | Daily SMA100 | 163.29 |
| 3 | Daily SMA200 | 160.83 |
The previous day high was 167.22 while the previous day low was 165.03. The daily 38.2% Fib levels comes at 165.87, expected to provide support. Similarly, the daily 61.8% fib level is at 166.39, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 164.98, 163.9, 162.78
- Pivot resistance is noted at 167.18, 168.3, 169.37
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 167.22 |
| Previous Daily Low | 165.03 |
| Previous Weekly High | 167.29 |
| Previous Weekly Low | 159.73 |
| Previous Monthly High | 167.22 |
| Previous Monthly Low | 148.80 |
| Daily Fibonacci 38.2% | 165.87 |
| Daily Fibonacci 61.8% | 166.39 |
| Daily Pivot Point S1 | 164.98 |
| Daily Pivot Point S2 | 163.90 |
| Daily Pivot Point S3 | 162.78 |
| Daily Pivot Point R1 | 167.18 |
| Daily Pivot Point R2 | 168.30 |
| Daily Pivot Point R3 | 169.37 |
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