GBP/JPY printed a daily low at 152.81, but late in the New York session bounced off, reclaiming 153.00.
GBP/JPY: In the near term, the trend is tilted to the downside but found strong support around 153.00.
The British pound recovered some ground on Friday, as the New York session finished, trading at 153.12, down 0.29% at the time of writing. The New York session ended with an upbeat market mood, as portrayed by US stock indices, rising between 0.08% and 0.56%.
On Friday, the GBP/JPY pair reached a daily low at 152.81, but the Sterling pound recovered some losses as the American session progressed, trimming some losses, and the GBP/JPY bulls reclaimed the 153.00 level.
GBP/JPY Price Forecast: Technical outlook
The GBP/JPY Friday’s price action witnessed the pair breaking the 50-day moving average (DMA) to the downside, as the 50-DMA sits at 153.14, leaving GBP bulls at risk. The positive out of the drop in the day is that the 100-DMA was not at risk, but if the GBP/JPY selling pressure continues to mount, it could be broken, exposing the 152.00 psychological support level.
For GBP/JPY bulls to reclaim the near-term control, they will need to reclaim the 50-DMA so that they can challenge the psychological 154.00. In the case of that outcome, the following supply zone would be 156.00.