News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Russia signals no extra gas for Europe without Nord Stream 2
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: 0.35% Wall Street: 0.28% FTSE 100: 0.00% Germany 30: -0.03% France 40: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/mPffU6zMaL
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/SYKs5FXzIn
  • USD/JPY IG Client Sentiment: Our data shows traders are now at their least net-long USD/JPY since Sep 30 when USD/JPY traded near 111.35. A contrarian view of crowd sentiment points to USD/JPY strength. https://www.dailyfx.com/sentiment https://t.co/zKjU8inhgV
  • - Euro Area inflation still mostly transitory, some components partly more persistent than previously though. - If elevated inflation lasts much longer, it will likely have effect on expectations $EUR
  • ECB's Rehn says there is still plenty of economic slack in Europe $EUR
  • Coming up at half past: my weekly webinar looking at the charts, the sentiment indicators on the calendar this week and the IG client positioning data. Do join me if you can https://t.co/k8xpSlEM0n
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/DHjcgvlboC
  • 🇪🇸 Balance of Trade (AUG) Actual: €-3.9B Previous: €-1.60B https://www.dailyfx.com/economic-calendar#2021-10-19
  • 🇵🇱 Employment Growth YoY (SEP) Actual: 0.6% Expected: 0.6% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2021-10-19
GBP/JPY – British Pound Set Up to Move Soon vs Japanese Yen

GBP/JPY – British Pound Set Up to Move Soon vs Japanese Yen

Paul Robinson, Strategist

GBP/JPY Highlights:

  • GBP/JPY forming a solid price pattern on support
  • A breakout (seen as likely lower) appears to be very near

The British Pound has been on the move a bit against the US Dollar, but appears poised to do so soon versus the Japanese Yen. GBP/JPY has been coiling up since the general election spike back on December 13. The price action is forming a descending wedge.

These types of patterns suggest a breakout is nearing as volatility contracts, and with the wedge having a flat bottom and lower-highs, the breakout is poised to be to the downside. There is very solid horizontal support around the 14120/4080-area.

A swift decline below support should have GBP/JPY rolling downhill with a level of support around 13920 up first, followed by the 200-day MA at 13757 and falling. The size and duration of the pattern suggest though a move below 13757 is in the works, with 13551 support seen as another spot of interest as support.

On the flip-side, should GBP/JPY break the upper trend-line of the wedge, a bullish breakout could carry GBP/JPY back towards the high nearing 14800. At this immediate moment, the play is to sit tight until one side or the other confirms a breakout.

GBP/JPY Daily Chart (descending wedge nearing breakout)

GBP/JPY daily chart

GBP/JPY Chart by TradingView

***Updates will be provided on the above thoughts and others in the trading/technical outlook webinars held at 1030 GMT on Tuesday and Friday. If you are looking for ideas and feedback on how to improve your overall approach to trading, join me on Thursday each week for the Becoming a Better Trader webinar series.

---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.

DISCLOSURES