GBP/JPY Price Analysis: Tumbles below the 162.00 figure on risk aversion

• Drops below the 20-day EMA at 162.01 after hitting a daily high at 162.59.
• GBP/JPY’s failure to break below 161.23, opened the door for further buying pressure.

The GBP/JPY is subdued as Wednesday’s Asian Pacific session begins, trading within familiar levels, unable to break above/below the 160.80-162.83 region for nine consecutive days. At the time of writing, the GBP/JPY is trading at 161.76, below the 20-day EMA.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY daily chart illustrates the 162.80 resistance as a solid supply zone, ahead of the 100 and the 50-day EMAs, each at 162.98 and 163.23, respectively. Also, the Relative Strength Index (RSI) slope is horizontal, further cementing the pair’s consolidation for the last 14 days.

If the GBP/JPY breaks above 162.80, it will expose the 100 and 50-day EMAs on the upper side. Once cleared, the next stop will be a three-month-old downslope trendline, drawn from the YTD highs around 168.00, which passes around the 163.70 area, ahead of the 164.00 mark.

On the other hand, the GBP/JPY’s first support would be the August 23 daily low at 161.82, followed by the 161.00 mark, followed by the August 16 low at 160.08.

GBP/JPY Key Technical Level