GBP/JPY: trying to build on support 11/8/2022

The pound declined against the yen within the expected negative outlook during the last analysis, touching the official target at 161.90, to record its lowest level at 161.70.

On the technical side, today, we find the pair hovering around the 50-day simple moving average, trying to stabilize above, as we see there on the 4-hour time frame, some positivity features that started to appear on the stochastic indicator.

We may witness a bullish bias in the coming hours, aiming to retest 163.00, and gains may extend towards 163.50 as long as the daily trading of the pair is stable above 161.70.

The trading stability below 161.70 invalidates the idea of ​​the temporary rise and puts the price under negative pressure again, waiting for 160.95.

Note: The US Producer Price Index is due later in the session; it has a big impact and may cause price volatility.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 162.15	R1: 164.10
S2: 160.95	R2: 164.80
S3: 160.25	R3: 165.90