●Market sentiment weighs on GBP/JPY as JPY gains traction post-Fed commentary, pushing the pair 0.24% lower
●Daily chart analysis reveals price action hovering above Ichimoku cloud, signaling neutral conditions with bullish potential
●Critical juncture approaches with 183.62 support zone in focus, while 186.00 breakout could validate upward continuation
Thursday's trading session witnessed GBP/JPY surrendering early gains as Federal Reserve Chairman Jerome Powell's remarks at an IMF event reinforced expectations for sustained restrictive monetary policy. This development enhanced the Japanese yen's appeal as a safe-haven asset, creating headwinds for the British pound. The cross currently fluctuates near 184.97 after testing intraday highs around 185.89.
Technical evaluation of the daily timeframe shows the pair maintaining position above the Ichimoku cloud, though the narrowing cloud width and absence of consecutive higher highs suggest potential consolidation. Market participants should note the significance of the 183.62 support level (Tenkan-Sen), with additional floors at 183.49 (Senkou Span A) and 183.36 (Kijun-Sen).
The upside scenario remains viable if buyers can propel prices above the psychological 186.00 barrier, which might initiate a test of yearly peaks near 186.76. Conversely, sustained trading below 184.00 could accelerate declines toward the 183.00 handle. The current technical setup warrants close monitoring of these pivotal levels for directional confirmation.
GBP/JPY Technical Outlook – Daily Chart Analysis
