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
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Indian Rupee 2020 outlook is bearish as India faces stagflation risk amid rising onion and crude oil prices. $USDINR may rise in the medium-term as the RBI defers hiking rates. Get your market update from @ddubrovskyFX here: https://t.co/lRrlZjAQDw https://t.co/mFv1EOYMjG
  • The $GBP may be on the cusp resuming a 12-year downtrend against the US Dollar as signs of topping emerge at pivotal chart resistance. Get oyur market update from @IlyaSpivak here:https://t.co/9rM3OjWmBA https://t.co/sUWcSFruHw
  • The $NZD may be on average at risk to further losses against its major counterparts such as the US Dollar and Japanese Yen. Where to for NZD/USD and NZD/JPY from here? Find out from @ddubrovskyFX here:https://t.co/OFjePKYdCb https://t.co/eo1c6QAVd8
  • $AUDJPY technical positioning hints prices may be on cusp of turning lower after a late-2019 bounce, recoupling with a dovish RBA policy outlook. Get your market update from @IlyaSpivak here: https://t.co/z84Y0V0ZtH https://t.co/wcIGO1emDw
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/FfCkGhtHsm
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here:https://t.co/SZAG0yMu3d https://t.co/cBZj5tC0Ny
  • The $NZD is inching toward support guiding gains in the fourth quarter of 2019. A break may set the stage for long-term bearish trend resumption. Get your market update from @IlyaSpivak here:https://t.co/bnlx4RJ8oV https://t.co/d60YziMYnO
  • $Gld prices are poised to mark the highest weekly-close in nearly seven-years, but the bulls aren’t in the clear yet. Here are the XAU/USD levels that matter next week. Get your $XAUUSD technical analysis from @MBForex here: https://t.co/yeTH6HwncQ https://t.co/6sIpxTSNaX
  • Video https://t.co/PZeqhLumSR
  • The $USD rose as the Singapore Dollar, Malaysian Ringgit and Philippine Peso fell on coronavirus fears. What is the technical outlook for USD/IDR, USD/SGD, USD/MYR and USD/PHP? Find out from @ddubrovskyFX here: https://t.co/G3GmyOe4IT https://t.co/iq7ajeP6iv
GBP/JPY Price Forecast: Bearish Momentum Showing Signs of Weakness

GBP/JPY Price Forecast: Bearish Momentum Showing Signs of Weakness

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

GBP/JPY Price Outlook, Charts and Analysis

  • Japanese Yen looking ahead to important data releases tonight, including CPI.
  • GBP/JPY downward trend showing weakness.

Find out more about what is likely to move market prices through mid-year, and download for free Q2 GBP and JPY forecasts

To learn more about data releases for this week check out DailyFX Economic Calendar

GBP/JPY – Bears losing power

On May 23 GBP/JPY moved to the lower trading range (139.00 – 137.84) after closing below 139.00. The price showed more weakness and failed in the following days to close above the higher end of the mentioned trading range.

On May 29 the pair declined to the level mentioned in last week’s article, 137.95, and continued its fall to print 137.87 - its lowest level in four and a half months. However, the price pulled back in the same day closing with a Bullish Doji pattern.

Read More: Bearish momentum continues as Brexit turmoil weighs

Alongside this development, the relative strength indicator (RSI) remained below 30, in oversold territory. However, the price fell to a new low on Wednesday, while the oscillator failed to reach a new low, indicating the start of a bullish divergence and a weakening of the bearish momentum.

Just getting started? See our Beginners’ Guide for FX traders

GBP/JPY DAILY PRICE CHART (JAN 2, 2019- MAy 30, 2019)

GBP/JPY price Daily Chart 30-05-19

A closer look at the GBP/JPY daily chart shows bears hesitating before pushing the price lower. If the price closes on Thursday above 139.00, this would be considered a bullish close, moving the price to a higher trading range (139.00- 140.50). This could result in a price rally towards the higher end of the mentioned trading range. Weekly and daily resistance levels at 139.50, 139.86 and 140.20 need to be watched closely.

A close below 137.84 would mean more weakness for GBP/JPY and move the price to a lower trading range (136.40 – 137.84). This could lead to a fall towards the lower end of the new trading range at 136.40. Weekly and daily support levels at 137.62, 137.36, 137.10 and 136.82 are worth monitoring.

Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make

GBP/JPY Two-HOUR PRICE CHART (May 16 –30, 2019)

GBP/JPY price 2H Chart 30-05-19

Looking at the GBP/JPY two-hour chart, the price rebounded Thursday from 138.22 twice. Therefore, any break below this threshold suggests the price might swing lower towards the lower end of the current trading range at 137.84. The 138.00 level would provide psychological support.

A break to the higher end of the current trading range at 139.00 could cause the price to rally towards the daily resistance mentioned above. However, resistance at 139.25 needs to be in focus.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.