#GBPJPY @ 170.371 defends the previous day’s retreat from one-week high, retreats on upbeat Japan Q1 GDP., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/JPY defends the previous day’s retreat from one-week high, retreats on upbeat Japan Q1 GDP.
• U-turn from monthly resistance line directs cross-currency pair towards 170.00 support confluence.
• Bears need validation from 200-SMA and BoE Governor Bailey.

The pair currently trades last at 170.371.

The previous day high was 170.84 while the previous day low was 169.4. The daily 38.2% Fib levels comes at 169.95, expected to provide support. Similarly, the daily 61.8% fib level is at 170.29, expected to provide support.

GBP/JPY remains pressured around 170.25 while extending the previous day’s U-turn from a one-week high on early Wednesday. In doing so, the cross-currency pair justifies the upbeat Japan growth numbers while keeping Tuesday’s pullback from a descending resistance line stretched from May 01.

That said, Japan’s first quarter (Q1) 2023 Gross Domestic Product (GDP) rose to 0.4% QoQ versus 0.1% expected and 0.0% prior, per the preliminary reading.

Also read: Japan Q1 GDP improves to 0.4% QoQ versus 0.1% expected, 0.0% prior

Given the upbeat Japan data and the pair’s U-turn from the key resistance line, backed by a firmer RSI (14), the GBP/JPY is likely to decline further.

However, a convergence of the 50-SMA and a one-week-old ascending trend line, near 169.90 by the press time, could restrict the short-term downside of the GBP/JPY pair.

Following that, the double tops marked during late April around 168.00 and the current monthly can prod the pair sellers. It should be observed that the 200-SMA level of around 167.50 acts as the last defense of the GBP/JPY buyers.

Alternatively, recovery moves may aim for the aforementioned monthly resistance line surrounding 170.60 ahead of challenging a seven-week-old upward-sloping previous support line of near 170.90. Following that, GBP/JPY can target an upside move toward the monthly peak of 172.35.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 170.28 at the time of writing. Pair opened at 170.34 and is trading with a change of -0.04% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 168.98, 50 SMA 165.58, 100 SMA @ 163.01 and 200 SMA @ 163.77.

The previous day high was 170.84 while the previous day low was 169.4. The daily 38.2% Fib levels comes at 169.95, expected to provide support. Similarly, the daily 61.8% fib level is at 170.29, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 169.55, 168.76, 168.12
• Pivot resistance is noted at 170.99, 171.63, 172.42

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