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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • The options market can be an excellent place to express trading ideas, as it presents numerous ways to structure trades with various risk profiles. Learn to trade the Options market with DailyFX. Download your free guide here! https://t.co/B78Mn99fU0 https://t.co/EpUMWMSGWO
  • On this week's Macro Setup @HathornSabin discusses with @GuyAdami & @RiskReversal the September stock swoon, rate rampage, and dollar dominance. Check it out! https://t.co/k68k2UP7rr https://t.co/0kGvdXWrDK
  • Fed's Bostic: - Any decision on a central bank digital currency is a long way off - Taper is warranted if current trends continue
  • Heads Up:🇺🇸 Fed Bostic Speech due at 19:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Canadian #Dollar Outlook: $USDCAD Snaps Five-Days Down- Reversal Risk - https://t.co/O2MYTxe7bE https://t.co/tqIZUjE7pZ
  • AUD/USD lower on the day, but appears to be finding support around 0.7231 $AUDUSD https://t.co/XNnQWvJP4A
  • JP Morgan CEO Jamie Dimon: - $JPM has started preparing for potential US default - I expect Congress to address debt limit in time $JPM $USD $DXY
  • Heads Up:💶 ECB Panetta Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • RT @MacroSetup: On today's episode of Macro Setup @GuyAdami & @RiskReversal discuss the September stock swoon, rate rampage, and dollar dom…
  • Gold prices have continued to sell-off in the wake of last week’s FOMC rate decision. . Get your $XAUUSD market update from @JStanleyFX here:https://t.co/UBBqiwf0cY https://t.co/K1HTfPrZaU
GBP/JPY Price Outlook: Failed at Resistance Now Eyes Support

GBP/JPY Price Outlook: Failed at Resistance Now Eyes Support

Mahmoud Alkudsi, Analyst

GBP/JPY Technical Forecast

GBP/JPY- Bears in Charge

On Wednesday, GBP/JPY printed 130.66- its lowest level in six weeks. Later on, the price rallied and settled above 131.00 as some bears seemed to cover. Yet, on Friday the market closed the weekly candlestick with a near 1.0 % loss.

This week, the Relative Strength Index (RSI) has remained below 50, indicating that bearish momentum was still intact.

GBP/JPY Daily PRice CHART (AUG 1, 2018 – May 13, 2020) Zoomed Out

GBPJPY daily price chart 13-05-20 zoomed out

GBP/JPY Daily PRice CHART (MARCH 17 – MAY 13, 2020) Zoomed In

GBPJPY daily price chart 13-05-20 zoomed in

Based on analysis of the daily chart, on April 14 GBP/JPY corrected its uptrend move then started a sideways move creating lower highs with higher lows. On Monday, the price closed below the 50-day moving average providing a bearish signal. On the following day, the market reversed lower eyeing a test of the low end of the current trading zone 128.84 -133.30.

A close below the low end of the aforementioned zone may encourage bears to press towards 125.50. A further close below that level could send the GBPJPY even lower towards 122.62. That said, the weekly support area and levels marked on the chart (zoomed in) should be considered.

On the flip-side, a close above the high end of the zone would mean weaker bearish sentiment and may cause a rally towards 137.83. A further close above that level could extend this rally towards 143.20. In that scenario, the weekly resistance levels underlined on the chart should be kept in focus.

GBP/JPY Four Hour PRice CHART (April 29 – MAy 13, 2020)

GBPJPY four hour price chart 13-05-20

Looking at a four-hour chart, on Friday GBP/JPY broke above the neckline of the double bottom pattern located at 132.02 then rallied towards 131.19. This week, the price has respected the downtrend line originated from the April 30 high at 135.45, highlighting the bearish outlook of the market.

A break below 130.65 could trigger a selloff towards 129.63. Nonetheless, the weekly support level underscored on the chart should be watched closely. In turn, a break in the other direction i.e. above 134.20 may cause a rally towards 135.50. Although, the weekly resistance level printed on the chart should be monitored.

Written By: Mahmoud Alkudsi,Market analyst

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