The GBP/JPY snaps two days of gains and retreats modestly towards the 167.00 figure as the early stages of the Asian session are witnessed. The GBP/JPY exchange hands at around 167.16, diving 0.16%.

GBP/JPY Price Action

The daily graphic shows that the GBP/JPY remains upward biased, though it encountered a wall of resistance at around the 168.00 mark. Although it has printed back-to-back days of gains, failure to extend its rally past 168.00 keep downside risks looming. In addition, the Relative Strength Index (RSI) indicator continued to aim lower, suggesting that sellers are still hovering.

Meanwhile, the Rate of Change (RoC) shows buyers remain present, though a possible rally remains in play. If GBP/JPY buyers reclaim 168.00, that could exacerbate an upward move to December 13 swing high at 169.27. But first, there are some hurdles on the way north.

Firstly, the YTD is high at 167.97, nearby the 168.00 figure. A breach of the latter will expose the last December cycle high at 169.27.

Conversely, if GBP/JPY falls below 167.00, that would exacerbate a fall initially to the 20-day EMA at 165.85, followed by the latest week low of 165.42, before testing the 50-day EMA at 164.21.