Never miss a story from Mahmoud Alkudsi

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Mahmoud Alkudsi

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

GBP/JPY Price Outlook, Charts and Analysis

  • GBP looking ahead to Bank of England Governor Carney’s speech tomorrow.
  • GBP/JPY bearish momentum nearing its end

Did we get it right with our GBP and JPY forecasts? Find out more for free from ourQ2 GBP and JPY and main currencies forecasts

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

GBP/JPY – Bearish Momentum Losing Steam

On May 31, bearish momentum sent GBP/JPY to trade in a lower multi - day trading range (136.40 – 137.84). The pair also broke below the Jan 15 low at 137.37 but failed to reach the lower end of the mentioned range. The monthly candlestick closed with 5.8% loss at 136.79.

The bearish momentum showed previously signs of weakness, and returned at the start of June indicating more weakness. The pair closed on June 3 with a doji pattern, alongside the relative strength index (RSI) rose from 19 to 27 indicating a clear intention to abandon the oversold territory.

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

GBP/JPY DAILY PRICE CHART (FEB 4, 2019 – JUN 5, 2019)

GBP/JPY price Daily Chart 05-06-19

Looking at the GBP/JPY daily chart we notice the price is heading to test the higher end of the current trading range mentioned above. Any close above 137.84 might send the price higher towards 139.00. The weekly resistance at 138.40 and 61.8% Fibonacci retracement at 138.67 need to be in focus.

Further bullish movement would be contingent on trading above 139.00. If GBP/JPY closes above it will likely move to the higher trading range (139.00- 140.50) with an increased likelihood to see the higher end of the range.

In turn, a close below 136.40 could mean more bearishness towards 135.53. The weekly support at 136.00 should be watched closely. If GBP/JPY closes below 135.53 it could open the way towards 133.35. However, the weekly supports at 134.92 and 134.20 are worth monitoring.

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

GBP/JPY Four-HOUR PRICE CHART (MAY 13- 5 JUN, 2019)

GBP/JPY price 4hour chart 05-06-19

Looking at the four-hour chart, yesterday GBP/JPY printed 136.55 its lowest price in 5 months. In turn, the pair traded above 137.12 after rebounding on Monday. Today, the price rallied nearing 137.84. Therefore, any failure in this rally and a break below yesterday’s high 137.12 would open the door for the bears to try to retest 136.55. A break below 136.40 may lead GBP/JPY towards the weekly support mentioned above at 136.00.

On the other hand, a rally above the weekly resistance at 138.40 could send the price higher towards 139.00. The resistance zone at 138.67 61.8% Fib and the May 30 high 138.74 need to be in focus.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi