FX.co ★ GBP/JPY

GBP/JPY H4 Timeframe The H4 chart shows the GBP/JPY pair is in a recovery phase after experiencing significant bearish pressure in early November. The price is currently trading around 202.50, breaking above the previous consolidation area and indicating potential for further upside. The two exponential moving averages (EMAs) used, the 100 EMA (blue) and the 200 EMA (red), provide important signals regarding the direction of the short- to medium-term trend. Previously, selling pressure pushed the price down to the 200.50 area, which served as strong support. From there, the price rebounded with significant bullish momentum. Currently, the price has broken back above the 200 EMA, indicating a potential reversal from bearish to bullish if the next candle closes above that level. If the price is able to break through and maintain above the 100-day moving average (EMA), currently around 202.30, further upside towards the resistance area of 203.24 to 204.22 is likely. Conversely, if a downward correction occurs and the price breaks back below the 200-day moving average (EMA), selling pressure could re-emerge, with a downside target towards support at 200.54 or even 198.84. The price structure indicates that the area between 201.00 and 202.00 is now a crucial equilibrium zone, potentially a reaction zone between buyers and sellers. As long as the price remains above this zone, the short-term bias is positive.

In terms of price movement patterns, the price appears to be forming a higher low than the previous low, further strengthening the bullish case. However, for stronger confirmation, a valid break above the 203.24 resistance level with supportive volume is needed. This technical indication suggests that the market is recovering from selling pressure, and market participants are likely speculating on the pound strengthening against the Japanese yen. Overall, the GBP/JPY technical outlook on the H4 timeframe is currently moderately bullish, with potential upside towards the 203.20-204.20 area as long as the price remains above the 200-day moving average (EMA) and does not breach the 201.00 support level again. However, caution is still needed given the yen's high volatility ahead of key economic data releases in Japan and the UK.