GBP/JPY: the decline continues 4/8/2022

Positive trading dominated the movements of GBP/JPY, cancelling the expected negative outlook during the previous report, in which we relied on the price stability below 162.00. The consolidation above the mentioned level leads the pair to recover temporarily, with a target of 162.90 to record its highest level at 163.06, compensating the short position.

Technically, the simple moving average returned to pressure the price from above, as we find clear negative signs on stochastic due to entering the overbought areas.

Therefore, we may witness a bearish tendency in the coming hours, targeting a retest of 162.00, a first target, and then 161.50, unless we witness any trading above 163.40, because its breach will stop the bearish scenario immediately and fuel the pair towards 164.10 areas.

Note: High-impact economic data from the British economy is due today; interest rate decision, the Governor of the Bank of England’s speech and the monetary policy statement issued by the Bank of England and the monetary policy summary, and we may witness high volatility in prices.

High Risk

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: 161.50	R1: 163.40
S2: 160.40	R2: 164.10
S3: 159.60	R3: 165.20