Currency Pair: GBP/JPY Chart: 15 Min Charts Short-Term Bias: Short
The GBP/JPY has faced heavy selling pressures throughout the week, and has dipped below 200.00 in the last few hours of trading.
Analysis Update
Recent price action for the GBP/JPY has moved in our favor, and has broken below 199.00 to trigger an oversold RSI signal within the last few hours of trading. As expected, the pound-yen looks to have found short-term support near 198.50, and may work its way back up into the channel.
The 120 SMA continues to hold course, leading us to hold a bearish outlook for the pair. We expect the downtrend to hold for the time being, and expect price action to move lower next week. Increased selling pressures should lead the pair to break below 198.50 over the next few trading session, and may test for support near 198.00. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The GBP/JPY has faced heavy selling pressures throughout the week, and has dipped below 200.00 in the last few hours of trading. We expect the downtrend to carry over to the next week, but will closely monitor price action as the pound-yen moves towards key support levels.
Price action continues to hold within the channel, with the 120 SMA holding course. After falling for three consecutive sessions, the downward momentum has lost some steam, but we expect pound weakness to carry the pair lower. We expect the pair to break below 199.00 over the next few trading session, and may fall further to test 198.80 for support. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.