GBP/JPY Price Forecast: Evening star threatens 216.00 support
The GBP/JPY failed to sustain the 217.00 breakout, reversing to the 216.50 area as traders faded the move, exacerbating the decline to current exchange rates. At the time of writing, the cross-pair exchanges hands with losses of 0.36%.
The GBP/JPY currency pair is facing a bearish trend after failing to sustain a breakout at 217.00, reversing instead to the 216.50 level. This has led traders to reassess their positions, resulting in losses of 0.36%. The price action has revealed a potential 'evening star' pattern, indicating a possible downtrend. The first support levels are at the psychological 216.50 and 216.00, with the 50-day Simple Moving Average (SMA) at 215.78 and the 100-day SMA at 215.02.
Should GBP/JPY breach the 216.00 level, the 215.78 SMA would be exposed, followed by the 215.02 level. Conversely, if the pair recovers above 217.00, the next target would be 218.00, then the July 30 highs at 218.69 and 219.00. The Bank of Japan (BoJ) plays a significant role in determining the Yen's value, often intervening to lower its value.
However, in recent years, the gradual unwinding of the ultra-loose monetary policy has provided some support to the Yen. The Yen is often viewed as a safe-haven investment, meaning its value may increase during times of market stress.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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