XM does not provide services to residents of the United States of America.

Technical Analysis – GBPJPY rebounds swiftly from its sharp drop as bias turns bullish



GBPJPY has experienced some large moves in the short term, with the price losing around 10% before it recovers back above the 160.00 mark. Moreover, the technical picture is currently endorsing the resumption of the rebound as the pair has forcefully crossed above the ascending 200-day simple moving average (SMA).

The momentum indicators suggest that near-term risks are tilted to the upside. Specifically, the stochastic oscillator is ascending near the 80-overbought region, while the RSI has rebounded from the oversold zone, currently touching the 50-neutral threshold.

If buying pressures persist, the pair could initially challenge the 50-day SMA, currently at 162.30. Surpassing this zone, the bulls might aim for the recent resistance region of 164.40 before the September peak of 167.50 appears on the radar. A break above the latter may bring the June high of 167.83 under examination.

To the downside, should the price decline below its 200-day SMA, the recent low of 159.10 could act as the first line of defense. Sliding beneath that floor, the pair might descend towards 158.00, which has acted both as support and resistance during 2022. Failing to halt there, the May low of 155.58 could then provide significant downside protection.

Overall, GBPJPY has been exhibiting huge volatility in the short term, with the pair managing to erase a huge chunk of its steep decline within four daily sessions. For the recovery to continue, the pair must decisively cross above its 50-day SMA.


Latest News

Technical Analysis – AUDUSD gets bearish vibes

A

Technical Analysis – WTI oil futures in fierce battle with 50.0% Fibo

O

Technical Analysis – GER 40 index marks highs after highs

G

G

Technical Analysis – NZDUSD returns to bearish trend

N

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.