Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
GBP/JPY Daily & 4-hr Chart Showing Weakening Price Action

GBP/JPY Daily & 4-hr Chart Showing Weakening Price Action

What's on this page

For longer-term trading ideas, forecasts, and a library of educational content, check out the DailyFX Trading Guides.

GBP/JPY has been generally weak for the better part of the year, with price not decisively trending down but the chart leaning lower. Since coming off a rejection on Friday from trend-line resistance, price action on the 4-hr time-frame has been weakening.

While not a textbook descending wedge given it doesn’t have a perfectly flat bottom, the general direction of the wedge is sloping downward as pronounced lower-highs are being carved out. A break below the lower trend-line of the pattern should have GBP/JPY rolling downhill towards support in the lower 14300s or worse.

With stops set just above the top-side line of the pattern, risk/reward is favorable given the distance to the target and potential for momentum. The initial target consists of the May low and lower trend-line extending down from a swing low created in October, and another from November (in the 14200s).

Given the trend is down and so are the targeted trend-lines, risk is higher they will break than if the trend-lines were of the rising variety. With that said, giving at least part of a position breathing room to break support and accelerate could end up being a good move for extending the trade (possibly down to 140/139). If buyers step up at support in earnest, though, then taking profits will be a prudent move.

***Updates will be provided on this idea and others in the trading/technical outlook webinars held on Wednesday and Friday.

Struggling right now? These 4 core concepts may help you get back on track – Building Confidence in Trading.

GBP/JPY Daily Chart (Leaning lower, turned down from trend-line)

GBP/JPY daily chart, leaning lower

GBP/JPY 4-hr Chart (Descending wedge)

GBP/JPY 4-hr chart, weakening price action taking on shape of a descending wedge

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.