Looking at the 1-hour chart of GBP/JPY, price is currently trading around 195.53, caught between two significant zones. Immediate resistance lies around the 196.40–196.50 area, where price has previously rejected several times—this is a strong supply zone.
On the downside, the 194.40–194.60 zone acts as key support and demand, with price bouncing off this level multiple times, showing buyers are still defending it.
The overall structure still respects a higher low formation, supported by an ascending trendline from the end of May, suggesting bullish bias unless that structure breaks.
Next week, keep an eye on UK CPI and BOE rate decision—both could be big movers. If CPI comes in hot, it could spark bullish momentum and push GBP/JPY through the 196.50 ceiling.
On the other hand, dovish BOE commentary could reverse sentiment fast. For now, potential long entries could be considered near 194.60 support with targets toward 196.50, while shorts might be taken around the resistance zone with tight stops and confirmation.
Always watch for breakout or rejection signs at these levels before committing.
On the downside, the 194.40–194.60 zone acts as key support and demand, with price bouncing off this level multiple times, showing buyers are still defending it.
The overall structure still respects a higher low formation, supported by an ascending trendline from the end of May, suggesting bullish bias unless that structure breaks.
Next week, keep an eye on UK CPI and BOE rate decision—both could be big movers. If CPI comes in hot, it could spark bullish momentum and push GBP/JPY through the 196.50 ceiling.
On the other hand, dovish BOE commentary could reverse sentiment fast. For now, potential long entries could be considered near 194.60 support with targets toward 196.50, while shorts might be taken around the resistance zone with tight stops and confirmation.
Always watch for breakout or rejection signs at these levels before committing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.