GBPJPY: Stalemate at Support – Will the Bulls Regroup or Give Way?

GBPJPY has encountered resistance at 191.30 and is currently testing the critical support level of 190.20. This analysis delves into the technical situation and explores potential scenarios for the currency pair.

Bulls Challenged at Resistance: Uptrend on Hold?

  • 191.30 Resistance: GBPJPY’s recent attempt to break above the 191.30 resistance level proved unsuccessful. This failed breakout suggests a potential pause in the uptrend that began from 185.21.

Support Levels in Focus: Potential Downturn or Bounce Back?

  • 190.20 Support: The immediate focus is on 190.20, the current support level.
    • Breakdown Scenario: If the price falls below 190.20, it could trigger further downside, potentially leading to a retest of the 189.02 support level. A break below this level could even see GBPJPY aim for the 188.00 area.
    • Upside Scenario: Conversely, if 190.20 holds, it could offer the bulls a chance to regroup and attempt another test of the 191.30 resistance.

Potential Breakout: Uptrend Resumption?

  • 191.30 Resistance Revisited: A successful break above 191.30 would be a bullish signal, indicating a resumption of the uptrend. This could open the door for a rise towards the 193.00 area and potentially solidify the uptrend.

Overall Sentiment:

The technical outlook for GBPJPY is currently uncertain. The failed breakout at 191.30 raises concerns about the uptrend’s immediate strength. However, the bulls still have a chance to regain momentum if they can defend the 190.20 support level. Monitoring the price action around these key levels will be crucial in determining the pair’s next move.