GBP/JPY Price Analysis: Subdued around 161.70, range-bound for the last four days

• GBP/JPY snaps two days of consecutive gains, down by 0.01%.
• The GBP/JPY daily chart illustrates the pair as range-bound.
• The GBP/JPY is seesawing in the 161.00-162.30 area, unable to break beyond the range.

The GBP/JPY is seesawing within a narrow range for the third consecutive day, though on Wednesday, it failed to continue the last five days of successive series of lower highs/lows; however, indecision keeps lurking at the cross-currency pair. As of writing, the GBP/JPY is trading at 161.63, below its opening price.

On Wednesday, the cross-currency pair opened near the day’s high before sliding sharply to the lows of the day of 160.08, at a time when market sentiment turned sour. However, the GBP/JPY stayed a comeback and rallied towards the 100-hour EMA at 161.79, stalling the pair’s recovery.

GBP/JPY Price Analysis: Technical outlook

From a daily chart perspective, the GBP/JPY has remained subdued for the last four days. During the previous three days, indecision surrounds the cross, further confirmed by the Relative Strength Index (RSI) almost flat, despite residing below the 50-midline.

In the short term, the GBP/JPY hourly chart portrays the pair as neutral biased. The exponential moving averages (EMAs) in the hourly chart are within a narrow range, below the exchange rate, except for the 100-EMA at 161.79. Therefore, the GBP/JPY trend is skewed to the upside, so a break above the latter, would open the door for further gains.

Therefore, the GBP/JPY first resistance would be the 162.00 figure. Once cleared, the next resistance would be the R1 pivot at 162.44, followed by the 163.00 mark.

On the other hand, if the GBP/JPY tumbles below the 161.00 mark, it would pave the way for further downside. The first support would be the 160.50 mark, followed by the S2 daily pivot at 160.11, followed by 160.00.

GBP/JPY Key Technical Level