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
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
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
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • RT @FxWestwater: #Copper Price Forecast: US Q3 GDP and Chinese PMI in Focus - via @DailyFX https://www.dailyfx.com/forex/market_alert/2020/10/23/Copper-Price-Forecast-US-Q3-GDP-and-Chinese-PMI-in-Focus.html https://t.co/SV0GskVO…
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.35% 🇨🇭CHF: 0.32% 🇦🇺AUD: 0.28% 🇯🇵JPY: 0.13% 🇨🇦CAD: 0.09% 🇬🇧GBP: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RXxjsCy8rA
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: -0.11% Oil - US Crude: -0.37% Silver: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Hc2TbgHQee
  • GBP/USD experienced some nice strength next week, and on that it kept forging the bullish channel building over the past month. Get your $GBPUSD technical analysis from @PaulRobinsonFX here:https://t.co/NIbRTVmjqq https://t.co/flxIsQmpld
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.80%, while traders in EUR/USD are at opposite extremes with 72.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vpBfv4QowY
  • US Equity Update (Friday Close): $DJI -0.10% $SPX +0.35% $NDX +0.25% $RUT +0.63% $VIX -2.38%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.39% FTSE 100: 0.34% Germany 30: 0.28% Wall Street: -0.03% US 500: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PJ6eqnizhK
  • Update on #Cryptocurrencies #BITCOIN -1.73% #BITCOINCASH -0.64% #ETHEREUM -2.40% #RIPPLE -3.39% #LITECOIN +1.68%
  • The Euro and European bourses finding some support this morning following this morning’s PMIs.Get your $EURUSD market update from @JMcQueenFX here:https://t.co/BR4OvkW5uO https://t.co/xLhhd9iqiI
  • New York Covid hospitalizations rise over 1,000 - highest since June - BBG
GBP/JPY Technical Analysis: Bullish Blast with Little Pull-back

GBP/JPY Technical Analysis: Bullish Blast with Little Pull-back

2017-05-04 12:04:00
James Stanley, Strategist
Share:

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

Talking Points:

After the Fed hiked rates in December of last year, GBP/JPY set a new high at 148.46 before spending much of the next four months heading-lower. By mid-April, the pair had traded all the way down to the 135’s and there was the very realistic possibility of the entire ‘Trump Bump’ in the pair being erased as a combination of risk aversion and concerns around Brexit drove bulls out of the market.

But after French elections, the risk trade got a serious shot-in-the-arm; and this was not irrelevant to GBP/JPY, as each day since has seen a continuation of bullish price action build in the pair. In the 14 trading days since the weekend of French elections, GBP/JPY has seen only 4 ‘down days’ and each of those were well-supported as bulls used any pullback as an excuse to buy more. On the chart below, we’re looking at the recent ‘phases’ of GBP/JPY price action, as the Trump Bump led into four months of retracement; much of which has been erased in the two-and-a-half weeks since French elections.

GBP/JPY Technical Analysis: Bullish Blast with Little Pull-back

Chart prepared by James Stanley

The only down-side of this move for bulls is the fact that GBP/JPY has seen very little pull-back and, at least at this stage, the move is rather overbought. On the 4-hour chart below, we can see RSI divergence building over the last week as prices just refuse to pull-back.

GBP/JPY Technical Analysis: Bullish Blast with Little Pull-back

Chart prepared by James Stanley

Given the veracity of the bullish move, traders should be able to comfortably move-forward with a bullish trend-side bias. But given the over-bought nature of GBP/JPY at the moment, traders will likely want to wait for a pull-back or some element of consolidation before looking to add bullish exposure. On the chart below, we look at three possible support areas to watch in the effort of catching the next ‘higher-low’ in GBP/JPY.

GBP/JPY Technical Analysis: Bullish Blast with Little Pull-back

Chart prepared by James Stanley

--- Written by James Stanley, Strategist 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.

DISCLOSURES