GBP/JPY Price Analysis: Sellers eyeing a break below the 200-hour EMA

• The GBP/JPY is set to finish the week with gains, up by 0.37%.
• GBP/JPY Price Analysis: A break below the 200-hour EMA to send the pair sinking towards 163.60s.

GBP/JPY barely rises as the Asian Pacific session begins, after Thursday’s session witnessed the cross-currency pair sliding from daily highs near 166.00 to 164.53 daily lows, in a volatile trading session, where the European Central Bank (ECB) grabbed the spotlight, hiking 50 bps for the first time in a decade. At the time of writing, the GBP/JPY is trading at 164.90, up 0.10%.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY daily chart depicts the pair as upward biased. Nevertheless, the risks are skewed to the downside, as sellers piled around the high 165.90-166.00 area and sent the pair plummeting towards the July 11 daily high at 164.46, which, once broken according to market structure, would shift the trend to neutral.

GBP/JPY 1-hour chart

The GBP/JPY hourly chart depicts the pair as downward biased. GBP/JPY buyers, unable to break Wednesday’s high around 166.25, left the pair vulnerable, so sellers stepped in and dragged the cross-currency pair towards the daily low around 164.53. Worth noting that the Relative Strength Index (RSI) is aiming higher but remains in bearish territory. However, the price action suggests that the GBP/JPY might print a leg up to the confluence of the 20 and 50-hour EMAs, around 165.26-33, before resuming the downtrend.

Therefore, the GBP/JPY first support would be the 200-hour EMA at 164.43. Break below will expose the S1 daily pivot at 164.20, followed by the 164.00 figure. A decisive break will send the GBP/JPY sliding towards the July 15 daily low at 163.64.

GBP/JPY Key Technical Levels