• GBP/JPY trims some Monday losses and hovers above the 155.00 figure.
• The daily chart portrays the pair as downward biased, though a “bullish-harami” candle pattern could open the door for a re-test of the 200-day EMA.
• If the GBP/JPY clears the 154.00 figure, it could send the pair towards the daily low at 148.53.

The GBP/JPY recovered some ground on Tuesday courtesy of a slight improvement in sentiment, though, in the end, US equities finished in the red, while Asian bourses are set for a lower open as risk aversion got back. At the time of writing, the GBP/JPY is trading at 155.12

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY daily chart shows the pair remains bearish-biased once it cleared the 200-day EMA. Tuesday’s price action completed a “bullish harami” candle pattern, suggesting that the GBP/JPY might be headed upwards. Nevertheless, due to Monday’s volatile trading session, the GBP/JPY could trim some of its losses but would need to surpass some resistance levels on its way north.

Therefore, the GBP/JPY’s first resistance would be the September 27 daily high at 156.36. The break above will expose the September 26 high at 157.22, followed by the 200-day EMA at 160.30. If buyers surpass the latter, that would shift the bias to neutral and open the door for further gains.

On the flip side, the GBP/JPY’s first support will be the September 27 daily low at 154.07. Once cleared, the next demand zone would be the January 24 daily low at 152.90, followed by a re-test of the YTD low at 148.53, ahead of the September 2020 cycle high of 142.70.

GBP/JPY Key Technical Analysis