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.
To contact the author of this article, please email: dsong@fxcm.com
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