GBP/JPY Snaps Range Bound Price Action

GBP/JPY may give back the advance from the January low (178.74) as it snaps the range bound price action from last week.

GBP/JPY Outlook

GBP/JPY appears to under pressure following the failed attempts to break/close above 189.00 (38.2% Fibonacci extension), with the Relative Strength Index (RSI) reflecting a similar dynamic as it reveres courses ahead of overbought territory.

GBP/JPY may fall towards the 183.90 (50% Fibonacci retracement) to 184.80 (23.6% Fibonacci extension) region as it initiates a series of lower highs and lows, with a break/close below the 179.70 (61.8% Fibonacci extension) to 180.80 (23.6% Fibonacci retracement) area opening up the January low (178.74) on the radar.

Nevertheless, GBP/JPY may trade within a defined range amid the flattening slope in the 50-Day SMA (184.58), with a move above 186.60 (50% Fibonacci extension) bringing the January high (188.94) on the radar.