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.

Free Trading Guides
Oil - US Crude
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
More View more
Real Time News
  • - The Singapore Dollar (SGD) presents a unique undertaking for traders - It is guided by the MAS, which manages the exchange rate instead of short-term rates - Learn the principals of developing an SGD fundamental forecast to trade USD/SGD https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/03/The-Singapore-Dollar-and-MAS-What-is-SGD-and-How-to-Trade-it.html
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/eWM70sTfq3
  • Natural Gas trading is popular among traders due to its volatility. How can you trade this? Find out here: https://t.co/GSzSS9fn7Z https://t.co/bl0lp9NtkQ
  • #EURUSD pivot points (daily) – S3: 1.0991, S2: 1.1065, S1: 1.1093, R1: 1.1167, R2: 1.1214, R3: 1.1288- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Hello there, traders! Themes for this week's webinar: - US-China #tradewar - #HongKongProstests: Carrie Lam's visit to Beijing - #UKElections2019 recap + outlook - Government shutdown in 2020? - Update on #RCEP - CRUCIAL rate decision this week⬇️ https://www.dailyfx.com/webinars/146770987
  • With increasing volatility in weather patterns, how might storms, hurricanes, and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Get your market update from @ZabelinDimitri here:https://t.co/O4dgBl47fq https://t.co/eMb7iCfdqS
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/1rVzPr6gx4
  • See the DailyFX Fundamental and Technical forecasts for the week ahead on the major currencies, indices and commodities here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2019/12/15/Dow-Pound-and-Aussie-Dollar-Test-Post-Trade-War-Election-Breakouts.html
  • The US-China agreement brings this scene from camp cinema history to mind: https://t.co/WsfoGMZbw1 via @GIPHY https://t.co/h045efj8Em
  • What is the ascending triangle and how can you trade it? Find out here: https://t.co/SyL29jQflv https://t.co/F8415DaNGE
GBP/JPY Technical Analysis: The New Trend is Settling-In

GBP/JPY Technical Analysis: The New Trend is Settling-In

2016-11-16 18:06:00
James Stanley, Currency Strategist

GBP/JPY Technical Analysis: The New Trend is Settling-In

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • GBP/JPY Technical Strategy: Near-term trend with bullish- continuation prospects.
  • GBP/JPY has moved up by more than 1,000 pips since last Tuesday’s lows, breaking numerous resistance levels on the way-higher.
  • If you’re looking for trading ideas, check out our Trading Guides.

In our last article, we looked at the premise of a new trend being in play in GBP/JPY after an 800+ pip, 3-day romp of price action driving prices higher. But as we advised, traders would likely want to wait for support as that trend had moved aggressively with very little retracement and very few swings, meaning there were a dearth of locations to look for stop placement.

The exciting part here is the fact that this trend just didn’t come out of the blue; both currencies were previously driving lower by either extremely dovish Central Bank policy or for the expectations for even more loose and dovish monetary policy. We discussed this theme last month in pertinence to GBP/JPY in the article entitled, Race to the Bottom.

But with Sterling now showing signs of life after the Bank of England pivoted on inflation expectations earlier in the month, and as the Yen continues to weaken, the prospect of a new trend-higher continues to get more attractive in GBP/JPY as there is a legitimate chance of seeing some element of monetary divergence in the coming months.

For traders looking to add long exposure in GBP/JPY, they would likely want to base approach on how aggressively they wanted to treat the move. Given the veracity of the incline, traders may need to sit through some drawdown before the trend-higher is ready to move-up should the entry be rushed. Prices are currently moving down to a prior level of short-term resistance around 135.73, and a bit lower we have a Fibonacci retracement level at 135.49. But perhaps more operable for this near-term support would be the 135 psychological level in the pair. Given that this is GBP/JPY, support has a tendency to be ‘less clean,’ so traders can be well-served by becoming pickier or more prudent in such a situation.

Should that support not hold, the level at 133.20 is interesting, as this was the ‘Brexit swing low’ in GBP/JPY; but perhaps more importantly has shown numerous subsequent tests as both support and resistance. And if the psychological level at 130 becomes broken, traders will likely want to question the prospect of continued bullishness in GBP/JPY.

GBP/JPY Technical Analysis: The New Trend is Settling-In

Chart prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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


News & Analysis at your fingertips.