GBP/JPY is having trouble extending its April gains near a key resistance area.
Will this lead to Guppy going back to its longer-term trend?
Check out the pair’s daily chart and see for yourself!
GBP/JPY Daily Forex Chart by TradingView
The British pound held up pretty well through most of April, thanks to the U.K. being relatively insulated from the sharp U.S. tariffs hitting other major economies. But now that trade war fears are calming down and U.K. data has been coming in soft, demand for Sterling is starting to lose steam.
The Japanese yen, on the other hand, remains one of the preferred safe-haven options and U.S. dollar alternatives despite the Bank of Japan’s (BOJ) recent not-so-hawkish policy decisions.
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 Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/JPY, which sustained an uptrend from 186.00 to 193.50 in April, is seeing red candlesticks near the 100 and 200 SMAs and below the 192.00 psychological level.
If we get a clean break and sustained action below the 190.24 Pivot Point, we could see more selling pressure that drags GBP/JPY back toward the 186.00 previous lows.
That said, if risk appetite picks up again, or if the upcoming BOE decision sparks a “sell the rumor, buy the news” move, then GBP/JPY could break above 193.50 and aim for the top of its longer-term ascending channel pattern near 196.00 before any serious pullback kicks in.
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!
