GBP/JPY PRICE ANALYSIS: TRADES AT FRESH SIX-YEAR HIGHS AT 171.20S, EYEING 175.00

GBP/JPY gained 2.72% for the week. BOJ intervention gave GBP/JPY buyers a better entry price near the weekly low of 165. 3. GBP/JPY remains on the upside and tests the February 2016 high of 175.01. GBP/JPY rose to a six-year high of 170.00 at as the Japanese yen (JPY) was hit by the British pound, which is recovering solidly after falling thanks to the former prime minister’s proposed mini-budget. Liz Truss, replaced by Rishi Sunak. Investors cheered Sunak’s arrival as the British pound strengthened against most G8 currencies. At the time of writing, GBP/JPY is trading at 171.20. GBP / JPY PRICE ANALYSIS: TECHNICAL OUTLOOK The daily chart of GBP / JPY shows that the pair is trending upwards and has a clear path to test the highs of February 2016 around 175.01. However, as the price action registers higher highs, the oscillators, namely the Relative Strength Index (RSI), do not, so the difference between the price action and the RSI can open the door to a reversal. The next major resistance areas are the psychological levels of 172.00, 173.00 and 17 .00. Otherwise, GBP/JPY’s first support would be 170.00, which could open the door to further losses once they clear. The next support area would be the October 27th daily low of 168.82, followed by the psychological 168.00.

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