GBP/JPY Price Analysis: Confined to the 156.30-80 range despite an upbeat market sentiment

• The GBP/JPY bulls failure at 156.60 will keep the cross-currency pair within the 154.30-156.50 range.
• GBP/JPY Technical Outlook: Neutral biased as depicted by trendless daily moving averages (DMAs) despite being located below the spot price.

The GBP/JPY is subdued amid a positive market mood on the Wednesday trading session, weighed by the GBP/USD, which is also confined to familiar ranges ahead of the critical January US inflation report unveiled on Thursday. At the time of writing, the GBP/JPY is trading at 156.39.

Financial markets mood is upbeat, portrayed by US equities finishing in the green. Meanwhile, Asian stock futures point to a higher open, carrying on the North American session mood.
In the FX complex, risk-sensitive currencies posted gains led by antipodeans, the CAD, and the EUR, while the British pound was the weakest in the day, down 0.02%.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY is subdued in a narrow trading range. In the middle of the European session, threatened of breaking the top of the 154.30-156.50 range, but failure to print a daily close above the aforementioned exposed the GBP/JPY to selling pressure.

Upward, the GBP/JPY first resistance would be the January 18 daily high at 156.90. If the GBP bulls crack that level, the next resistance would be the January 12 daily high at 157.70, followed by the November 2021 swing highs at 158.22.

Contrarily, the GBP/JPY first buying zone would be 156.00. Breach of the latter would expose the February 7 daily low at 155.13, followed by February 3 155.04.