GBPJPY Price Analysis: Tumbles from the 50% Fibonacci retracement, eyeing 166.00

• The GBPJPY snaps two days of gains, diving almost 90 pips amidst a risk-off impulse.
• GBPJPY Price Analysis: Neutral-to-upward biased, but failure to crack 169.00, exposed the pair to selling pressure.

The GBPJPY drops from weekly highs at around 169.08 as sentiment shifts, with most US equities trading in the red, except for the Dow Jones Industrial, clinging to gains. In the FX, safe-haven currencies begin to pare their earlier losses, so the Japanese Yen is staging a comeback against the Pound Sterling. At the time of writing, the GBPJPY is trading at 167.92, down by 0.47%.

GBPJPY Price Analysis: Technical outlook

After snapping four days of consecutive losses, the GBPJPY recovered some ground and registered this week’s previous high at around 169.09. However, as market sentiment shifted negatively, the cross-currency pair tumbled but failed to push below 167.60, which could open the door for a re-test of weekly lows at 165.92. Hence, the GBPJPY’s first support would be the 167.00 figure. The break below will expose the 166.00 psychological level, followed by the weekly low.

Otherwise, if the GBPJPY stays above 167.60, the pair could resume its uptrend but face solid resistance levels on the upside. The first supply zone would be the psychological 168.00 figure, followed by the weekly high of 169.09 and then the 170.00 mark.

GBPJPY Key Technical Levels