GBP/JPY: may witness an intraday rise 16/8/2022

GBP/JPY incurred a big day yesterday, recording its lowest level during the first trading sessions of this week, around the 160.10 level.

There are currently limited positive movements, trying to benefit from the support level of 160.00. We find the stochastic indicator trying to provide additional momentum on the short time frames.

We may witness a temporary rise in the coming hours to retest the 50-day moving average around 161.70, and that depends on the pair’s stability above 160.00

The decline below 159.80 will immediately stop any recovery attempts and lead the pair to complete the decline, with an initial target of around 158.90.

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: 159.80	R1: 161.80
S2: 158.90	R2: 162.95
S3: 157.80	R3: 163.80