GBP/JPY Price Analysis: Faces selling pressure from 200-EMA around 162.00

• GBP/JPY has slipped sharply after failing to sustain above the critical resistance of 162.00.
• The pound Sterling has sensed selling pressure above the 200-EMA around 162.00.
• The RSI (14) has dropped into the 40.00-60.00 range from the bullish range of 60.00-80.00.

The GBP/JPY pair has sensed selling pressure while attempting to surpass the immediate resistance of 161.50 in the early Tokyo session. Broadly, the cross has dropped firmly after failing to hold the crucial resistance above 162.00. The asset is facing the heat after a four-day winning streak despite the expression of an accommodative policy stance by the Bank of Japan (BOJ) in its summary of opinions.

GBP/JPY has witnessed a steep sell-off after failing to sustain above the 200-period Exponential Moving Average (EMA) at 162.13 on an hourly scale. The cross has dropped to near the 20-EMA around 161.38 and is likely to remain on tenterhooks ahead. On a broader note, potential support is plotted from December 21 high of around 161.00.

Meanwhile, the Relative Strength Index (RSI) (14) has dropped into the 40.00-60.00 range from the bullish range of 60.00-80.00, which indicates that the upside momentum has been terminated, for now, however, the upside bias has not been lost yet.

For an upside, the pair needs to overstep December 28 high at 162.34, which will send the cross toward November 11 low and December 2 low around 163.00 and 164.00 respectively.

Alternatively, a breakdown of December 21 high around 161.00 will drag the asset toward December 26 low at 160.19, followed by December 21 low at 159.50.

GBP/JPY hourly chart