GBP/JPY Price Analysis: Slumped Below 192.00 Amid Risk-Off Mood

By Christian Borjon Valencia of FX Street

Saturday, April 20, 2024 5:15 PM EDT

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The GBP/JPY currency pair dropped by around 0.56%, as rising Israel-Iran tensions drove safe-haven flows to the yen.
Though lower, the pair stayed bullish above the Ichimoku Cloud formation, with recovery possible upon reclaiming the 192.00 level in the coming days.
Keep an eye on the immediate support at the Kijun Sen structure at 191.06, as there may be potential for a further drop towards the 190.55 mark.

After consolidating around the 192.00 level for the last three days, the GBP/JPY currency pair finally tumbled down to the 191.00 handle. A flight to safe-haven assets spurred by an escalation of the Israel-Iran conflict boosted the Japanese yen to the detriment of the pound. At the time of writing, the cross lost approximately 0.56% and was seen trading at around 191.19.

GBP/JPY Price Analysis: Technical Outlook

The GBP/JPY pair remained above the Ichimoku Cloud (Kumo) structure, suggesting the pair may be bullish. Despite sliding below key support levels, like the Tenkan and Kijun Sen, the 50-day moving average (DMA), and hitting a daily low of 190.29, the pair resumed its recovery to its recent exchange rates.

For a bullish continuation, traders must reclaim the 192.00 mark in the coming days before breaking the next resistance area at the 192.80 level. Once cleared, that would expose the 193.00 psychological level, followed by the year-to-date high at 193.54.

On the other hand, if the pair slips below the Kijun Sen level at the 191.06 figure, that would exacerbate a drop below the confluence of an up-slope support trendline and the 50-day moving average at 190.55.

GBP/JPY Price Action – Daily Chart

(Click on image to enlarge)

GBP/JPY Technical Levels

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