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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.84%, while traders in EUR/USD are at opposite extremes with 73.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EwayAGFbnA
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the open of the week! https://t.co/chKtG7waxH
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.02% 🇬🇧GBP: 0.00% 🇦🇺AUD: -0.13% 🇨🇭CHF: -0.29% 🇪🇺EUR: -0.35% 🇨🇦CAD: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/mZiZqBCZLu
  • Heads Up:🇺🇸 Chicago Fed National Activity Index (SEP) due at 12:30 GMT (15min) Expected: 0.39 Previous: 0.79 https://www.dailyfx.com/economic-calendar#2020-10-26
  • Weekly Strategy Webinar starting in 15mins on DailyFX! https://t.co/lxd5fZnn4H
  • 🇲🇽 Economic Activity YoY (AUG) Actual: -9.4% Expected: -8.2% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-10-26
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/QwnJsDqWff
  • Heads Up:🇲🇽 Economic Activity YoY (AUG) due at 12:00 GMT (15min) Expected: -8.2% Previous: -9.8% https://www.dailyfx.com/economic-calendar#2020-10-26
  • Join @MBForex at 8:30 AM ET/12:30 PM GMT for his weekly strategy #webinar Register here: https://t.co/VAnAfZU02T https://t.co/n8n2IblRD3
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-26
GBP/JPY Price Outlook: Significant Trading Levels and Zones

GBP/JPY Price Outlook: Significant Trading Levels and Zones

2019-05-09 13:30:00
Mahmoud Alkudsi, Analyst
Share:

GBP/JPY Technical Analysis

  • Important Data for GBP Due Tomorrow, Including Q1 GDP
  • GBP/JPY Price Showing More Weakness

See the Q2 Forecasts for GBP and Other Major Currencies to learn what is likely to drive price action through mid-year

See the DailyFX Economic Calendarfor a comprehensive look at the week’s important data releases

Just getting started and need a hand?See our beginners’ guide for FX traders

GBP/JPY Daily Price Chart (April03, 2017 – May 09, 2019)

GBP/JPY Price- Daily Chart

Downtrend Gaining Momentum

Since mid-April, GBP/JPY has been leaning to the downside from the lower high created on April 12 at 147.01 to the April 25 lower low at 143.76. After that it rallied, but on May 6 the price opened with a breakaway gap to the downside, showing more weakness. The following day the price broke below 144.80 and pushed towards the levels mentioned in last week’s article: What Does Trading Above 144.80 suggest?

Yesterday, May 8, GBP/JPY broke below 143.21 but then rallied to close at that level, with sellers likely taking profit. Today, the price moved further to the downside where it bounced from 142.23, where the lower upside trendline on the advanced trendlines fan originated from Aril 17, 2017.

The Relative Strength Index (RSI) has declined from 57 on May 3 to 33 today, emphasizingthe strength of the bearish momentum and coming closer to the 30 oversold boundary.

To Sum Up, a close below 143.21 would suggest a continuation of the move lower towards the bottom of the trading range at 141.90. However, the price needs to clear the support zone at 142.09 - 142.04 first. Closing below 141.90 would encourage GBP/JPY to swing lower towards the zone between 141.04 (the 50% Fibonacci retracement of the previous move) and 140.94. Meanwhile, support levels at 141.78, 141.55 and 141.33 need to be monitored.

What if GBP/JPY remainsabove 143.21?

Closing within the higher trading range could be the start of an upside movement towards 144.80. A series of resistance levels at 143.33, 143.63, the zone between 144.04 and 144.17, and 144.40 need to be watched along the way.

GBP/JPY Two-Hour Price Chart (April 09 –May 09, 2019)

GBP/JPY Price- 2H Chart

Oversold

Today, May 9, GBP/JPY has broken below 142.81, where the downward-sloping trendline from the April 15 high checks in, printing at 142.23 – the lowest level in nearly three months. If the price breaks higher and remains above 142.78, it would suggest a bullish bias, hinting that prices might push to the area between 143.21 and 143.33, contingent on prices breaking through resistance at 142.85 and 143.00 first.

If the movement was to the downside, and prices trade below 142.43, it would suggest a move to test the uptrend line that sits today at 142.22. If the price breaks and remains below there, it would encourage GBP/JPY to push towards 141.90, taking into consideration the support zone mentioned above.

Meanwhile, the Relative Strength Indicator (RSI) has fallen to 23, with any fall under 30 warning that the pair has been oversold.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

Having trouble with your trading strategy?Here’s the #1 mistake that traders make

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

DISCLOSURES