Detailed FX Market Outlook and Analysis

GBP/JPY Daily Analysis 01-June-2023

GBP/JPY Daily Analysis

GBP/JPY Update and Intraday Analysis

Our Daily Analysis of the GBP/JPY pair demonstrates a period of stagnation, with the figures hovering slightly above 174.27. The present outlook for the intraday remains fairly neutral, but there’s a significant potential for a further increase. As evidenced by the 171.28 support level maintaining a steady grip, the current anticipation leans towards an upward trend.

Should the pair breach the 174.27 level, we anticipate a resumption of the broader uptrend, directing us towards a 100% projection target of 178.53, extrapolated from the growth witnessed from 148.95 to 172.13 and considering a base level of 155.35. However, a drop below the 171.28 minor support could hinder this bullish scenario, possibly tilting the balance towards a deeper downward correction.

Taking a step back to assess the bigger picture, the Daily Update reveals a steady upward trajectory from 123.96, traced back to the lows of 2020. The next milestone on the chart is pegged at 178.71, deduced from the 161.8% projection of the rise from 2016  low of 122.77  to the 2018 high of 156.61, using 123.96 as the baseline. Despite the possibility of a deeper pullback, the medium-term outlook stays optimistic, bolstered by the robust 155.35 support level. This serves as the fulcrum, even as the market tests the resilience of the bullish trend.

GBP/JPY Daily Analsysis Summary

To summarize, the Daily Analysis indicates a neutral intraday outlook for GBP/JPY, with potential for upward movement from 174.27 towards 178.53 if support at 171.28 holds. A long-term upward trajectory from 123.96 suggests the next target at 178.71.

  • EUR/USD displays a downside bias with a potential decline towards 1.0518
  • A breach of 1.0748 resistance could signal short-term bottoming and initiate a rebound
  • If the 1.1276 retracement level is surpassed, the pair might reverse its bearish trend

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