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GBP/JPY Price Analysis: Facing selling pressure from the 200-day exponential moving average near 162.00
GBP/JPY has dropped rapidly after failing to sustain above the important resistance of 162.00. The British pound has encountered selling pressure above the 200-EMA near 162.00. The RSI (14) has decreased from the positive area of 60.00-80.00 to the range of 40.00-60.00.
In the early Tokyo session, the GBP/JPY pair has seen selling pressure while seeking to surpass immediate resistance at 161.50. After failing to maintain important resistance above 162.00, the cross has declined significantly. The asset is under the heat after a four-day winning streak despite the statement of an accommodative policy stance by the Bank of Japan (BOJ) in its summary of thoughts.
After failing to sustain above the 200-period Exponential Moving Average (EMA) at 162.13 on an hourly scale, the GBP/JPY pair experienced a sharp decline. The cross has dipped close to the 20-exponential moving average (EMA) at 161.38 and the future is likely to be tense. On a broader scale, potential support is displayed from the high on December 21 near 161.00.
In the meantime, the Relative Strength Index (RSI) (14) has declined from the bullish area of 60.00-80.00 to the neutral level of 40.00-60.00, indicating that the upside momentum has been halted; however, the upside bias has not yet been lost.
For an upside, the pair needs to overstep December 28 high at 162.34, which will push the cross toward November 11 low and December 2 low at 163.00 and 164.00 respectively.
Alternately, a breach of the high of December 21 near 161.00 would send the asset toward the low of December 26 at 160.19, followed by the low of December 21 at 159.50.
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