GBP/JPY Price Analysis: Pulls back below 211, momentum shifts bearish

The GBP/JPY retreated for the second consecutive day on Wednesday after hitting a yearly high of 212.16 on Tuesday, dives below 211.00 and posted losses of 0.27%. As Thursday’s Asian session begins, the pair trades unchanged at 210.85.

A scarce economic docket in Japan and the UK, leaves traders adrift to geopolitical developments and risk appetite. A fall in global equity markets on Wednesday undermined the GBP/JPY, which is so far down 0.12% in the year.

GBP/JPY Price Analysis: technical outlook

The GBP/JPY technical picture remains constructive, but a sudden momentum shifts as depicted by the Relative Strength Index (RSI) suggests that a retracement is on the cards.

The RSI from being around 70 it is closing to 60, an indication of bulls losing strength.

With that said, if GBP/JPY clears the December 24 low of 210.06, a drop below 210.00 is likely and would exacerbate a test of December 9 swing high turned support at 208.95. A breach of the latter will expose the 50-day SMA at 206.74.

On the bullish front, if the cross-pair aims above 211.00, bulls could push the exchange rate towards the 212.00 mark.S

GBP/JPY Price Chart – Daily