#GBPJPY @ 160.731 The rallied more than 200 pips on Monday, ahead of the release of US inflation data. (Pivot Orderbook analysis)

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• The GBP/JPY rallied more than 200 pips on Monday, ahead of the release of US inflation data.
• GBP/JPY Price Analysis: Short term, could challenge 158.00; otherwise, a rally to 162.00 is on the cards.

The pair currently trades last at 160.731.

The previous day high was 159.64 while the previous day low was 157.53. The daily 38.2% Fib levels comes at 158.34, expected to provide support. Similarly, the daily 61.8% fib level is at 158.83, expected to provide support.

The GBP/JPY breaks above the top of a trading range, advancing sharply toward the top-trendline of a descending triangle in a downtrend, at 161.19, the day’s high, but retraced some of its gains. Hence, the GBP/JPY is trading at 160.66, above its opening price by 1.43%.

After reaching the day’s high in the session, the GBP/JPY did not hold to its gains above the 50-day Exponential Moving Average (EMA) at 160.78. That would have opened the door to challenge the confluence of the 200 and 100-day EMAs, each at 161.81 and 162.00. However, the symmetrical triangle top trendline capped the advancement as bears piled in, dragging prices lower.

In the short term, the GBP/JPY four-hour chart portrays the cross-currency as range-bound based on the EMAs residing beneath the spot price. Nevertheless, as the Relative Strength Index (RSI) turned overbought but exited from that territory, the GBP/JPY dropped from around daily/weekly highs.

If the GBP/JPY edges downwards, it will face a solid support area. Firstly the 200-EMA at 160.03, which, once cleared, could pave the way towards the 159.14/32 area, the confluence of the 20/50/100 EMAs. A decisive break will send the GBP/JPY diving towards the ascending triangle bottom trendline at around 158.18.

On the flip side, if the GBP/JPY reclaims 161.80, it will open the door to challenge 162.00.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 160.72 at the time of writing. Pair opened at 158.41 and is trading with a change of 1.46 % .

The pair is trading above its 20 Daily moving average @ 159.44, below its 50 Daily moving average @ 161.18 , below its 100 Daily moving average @ 163.43 and below its 200 Daily moving average @ 163.22

The previous day high was 159.64 while the previous day low was 157.53. The daily 38.2% Fib levels comes at 158.34, expected to provide support. Similarly, the daily 61.8% fib level is at 158.83, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 157.42, 156.42, 155.32
• Pivot resistance is noted at 159.52, 160.63, 161.62

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