GBP/JPY Daily Outlook

The daily pivot points for GBP/JPY are as follows: (S1) 186.70; (P) 188.14; (R1) 189.24. This technical analysis provides insights into potential market movements.

Currently, the intraday bias for GBP/JPY leans towards a downward trend. The 100% projection of the price movement from 198.94 to 189.31, calculated from 194.73, suggests a target around 185.10. If the price decisively breaks below this level, it could aim for the 138.2% projections at approximately 181.42.

On the upside, if GBP/JPY rises above the minor resistance at 189.57, the intraday bias may shift to neutral initially. However, as long as the resistance at 194.73 remains intact, the overall risk continues to lean towards a downside movement, even when some recovery occurs.

Looking at the broader picture, the price action since reaching 208.09 indicates a corrective phase from the rally that began at the low of 123.94 in 2020. A strong support level is anticipated at the 38.2% retracement mark between 123.94 and 208.09, which is located around 175.94 and is expected to limit further declines.

Nonetheless, should the price sustain a break below 152.11, it may signal a deeper decline. This could lead to targeting the 100% projection from 208.09 to 180.00, originating from 199.79, aiming at around 171.70, while still being classified as a correction.

GBP, JPY, analysis