At the moment, GBP/JPY continues to face steady buying pressure, which has held firm as the yen weakens gradually, driven by a temporary easing in trade war tensions. This has diminished the yen’s appeal as a safe-haven asset in the short term. While the bullish bias remains intact, it has not been strong enough to break out of the broad sideways channel that has defined price action in recent months.
Wide Sideways Channel
Since October 2024, the pair has remained confined within a broad horizontal range, bounded by resistance at 198.245 and key support at 188.437. So far, price movements have been insufficient to break out of this channel in the short term, making it the most relevant structure to monitor in the upcoming sessions.
Short-Term Uptrend
Within this broader range, bullish price swings have formed a steady short-term uptrend. However, recent moves have failed to produce higher highs, signaling a possible pause in upward momentum. If a neutral bias persists, this could challenge the ability of the uptrend to break free from the larger range.
Indicator Divergence
Flat price highs in GBP/JPY, combined with lower highs in RSI and MACD, have formed a bearish divergence, pointing to potential short-term exhaustion in buying pressure. This market imbalance could open the door for corrective selling in the near term if the divergence persists.
Key Levels to Watch:
Written by Julian Pineda, CFA – Market Analyst
Wide Sideways Channel
Since October 2024, the pair has remained confined within a broad horizontal range, bounded by resistance at 198.245 and key support at 188.437. So far, price movements have been insufficient to break out of this channel in the short term, making it the most relevant structure to monitor in the upcoming sessions.
Short-Term Uptrend
Within this broader range, bullish price swings have formed a steady short-term uptrend. However, recent moves have failed to produce higher highs, signaling a possible pause in upward momentum. If a neutral bias persists, this could challenge the ability of the uptrend to break free from the larger range.
Indicator Divergence
Flat price highs in GBP/JPY, combined with lower highs in RSI and MACD, have formed a bearish divergence, pointing to potential short-term exhaustion in buying pressure. This market imbalance could open the door for corrective selling in the near term if the divergence persists.
Key Levels to Watch:
- 196.406 – Current Resistance: Marks recent highs and could trigger short-term selling corrections if tested again.
- 198.245 – Major Resistance: Upper boundary of the broader sideways channel. A break above this level would invalidate the range and potentially signal a stronger bullish bias in upcoming sessions.
- 193.078 – Key Support: Aligns with the ascending trendline and the 50- and 200-period moving averages. A return to this level would reinforce the neutral tone and extend the current range-bound structure.
Written by Julian Pineda, CFA – Market Analyst
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.