The GBPJPY has fallen lower after holding a tight rate in the previous week, and should continue to work its way towards the lower bound of its medium-term range as investors continue to curb their appetite for risky assets.
Currency Pair: GBP/JPY
Chart: 60 Min Charts
Short-Term Bias: Flat
Analysis
The GBPJPY has fallen lower after holding a tight rate in the previous week, and should continue to work its way towards the lower bound of its medium-term range as investors continue to curb their appetite for risky assets. After reaching a high of 165.11 on 10/30, the pound-yen slipped to a low of 118.83 in January, and the lack of momentum to break above 141.90-142.00 (50.0% Fib) suggests that the pair will continue to move within range over the near-term. Over the next few hours of trading, I expect the GBPJPY work its way towards 128.70-80 (21.4% Fib) to test for short-term support however, as the RSI approaches oversold territory, we may see the pair attempt to retrace the sell-off from earlier this week. Nevertheless, if we see the pair break below the 21.4% Fib, we may perhaps see the pound-yen fall back towards the 1/23 low of 118.83 in the weeks ahead. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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