GBP/JPY looks ready to slip below an established consolidation!
Will we finally see a breakout, or are buyers lining up to defend support one more time?
Here’s what’s showing up on the 4-hour chart:
GBP/JPY 4-hour Forex Chart Faster with TradingView
The British pound has been on the back foot as cautious risk sentiment and fresh uncertainty around U.K. PM Starmer’s leadership cooled demand for Sterling.
At the same time, renewed yen intervention threats from Japanese officials have given the yen a boost, pulling most yen crosses lower even after a weekend election result that would normally lean bearish for the currency.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/JPY, which has been in an uptrend since October, has spent most of the year moving sideways in a roughly 500-pip range.
What makes today interesting is that the pair is now testing the 210.00 range support area, right around the S1 pivot point at 209.67.
If we get a couple more red candlesticks and a clean break below S1, that could open the door for a move toward the S2 support level.
But if buyers step in and defend this zone again, then GBP/JPY could bounce back toward the 212.00 mid-range resistance, if not retest the 214.80 previous highs.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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