• GBP/JPY erases some of its gains, set to finish the week with more than 3% gains.
• GBP/JPY traders mainly ignored UK’s political turmoil.
• The cross-currency is range-bound, as depicted by the one-hour chart.

The GBP/JPY trims some of its Thursday’s losses but remains nearby weekly highs at around the 166.00 area, despite UK’s political turmoil, weighing on the GBP/USD, the GBP/JPY continues to hold to gains due to the Bank of Japan dovish stance. Therefore, the GBP/JPY is trading at 166.16, below its opening price by 0.33%.

GBP/JPY Price Forecast

The GBP/JPY daily chart was unchanged compared to Thursday, though it should be noted that the exchange rate is above the October 5 high of 165.71, which could keep the GBP/JPY trading within the 165.71-167.27 range. Oscillators remain in positive territory, keeping the neutral-to-upward bias intact, though a break above 167.27 would pave the path to 167.94, ahead of challenging the YTD high at 168.73.

The GBP/JPY one-hour scale portrays the pair consolidating between the 20 and 50-EMAs, while the Relative Strength Index (RSI) is almost flat but at bullish territory. Upwards, the first resistance would be the 20-EMA at 166.42, followed by the daily high at 167.21, ahead of the 168.00 figure.

On the other hand, the GBP/JPY first support would be the daily pivot at 165.45, immediately followed by the 50-EMA at 165.27. Once that 18-pip area cleared, the GBP/JPY could tumble to the 165.00 area, followed by the S1 pivot at 163.59.

GBP/JPY Key Technical Levels