GBP/JPY Price Analysis: Subdued around 168.20s, with buyers eyeing a break of 169.00

• GBP/JPY begins the Asian session on the wrong foot, slightly down by 0.07%.
• Risk appetite improvement on Wednesday underpinned the GBP/JPY.
• GBP/JPY Price Analysis: Bullish biased, might accelerate the uptrend once it breaches 169.00.

After a volatile Wall Street session spurred by the US Federal Reserve (Fed) monetary policy decision, the GBP/JPY trims some of its Tuesday’s losses, courtesy of a risk-on impulse, despite a hawkish message delivered by Fed Chairman Jerome Powell. Nevertheless, a positive reaction by the GBP/USD pair lifted the GBP/JPY off the weekly lows of 166.70s weekly lows. As the Asian session begins, the GBP/JPY is trading at 168.28, registering minuscule losses of 0.07%.

GBP/JPY Price Analysis: Technical outlook

At the beginning of the week, the GBP/JPY edged toward the psychological 169.00 barriers, though Tuesday probed to be a negative day. The GBP/JPY slid almost 0.70% to the 168.00 area as traders booked profits after a soft US inflation report, augmenting speculations that the Fed would pivot. So risk-perceived or high beta currencies, like the Pound Sterling (GBP), weakened against safe-haven peers like the Japanese Yen (JPY).

Wednesday was different, though it witnessed the GBP/JPY falling below the 20-day Exponential Moving Average (EMA) at 167.22. Still, it recovered ground and printed a daily close above 168.00. Given the backdrop and oscillators slightly skewed to the upside, the GBP/JPY remains bullish.

Therefore, the GBP/JPY first resistance would be December’s 13 daily high of 169.27, followed by the 170.00 psychological price level. A breach of the latter will expose the YTD high of 172.12. As an alternate scenario, the GBP/JPY first support would be 168.00, which, once cleared, could send the pair tumbling toward the 20-day EMA at 167.22.

GBP/JPY Key Technical Levels