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
  • Further your stock trading knowledge and gain informed market analyses from our expert analysts @HathornSabin and @JMcQueenFX on Indexes with our free Q4 guide, available today.https://t.co/YQG1aaIT8C #Dailyfxguides https://t.co/aJViAT9lw8
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:https://t.co/pK95WaqA3j https://t.co/sLMza2wKYd
  • The Japanese Yen continues to be pummeled against most major currencies. Get your weekly Japanese Yen forecast from @HathornSabin here: https://t.co/WY5rcoqNP2 https://t.co/JT8yOUgceA
  • The US Dollar paused its advance against ASEAN currencies. USD/SGD eyes a key trendline, USD/THB risks stalling, USD/PHP enters consolidation as USD/IDR continues ranging. Get your market update from @ddubrovskyFX here:https://t.co/Hd4mu0MKkp https://t.co/1kOgueJOXz
  • The economic calendar has its top listings (China GDP among them), but traders would do well to keep tabs on themes like the Fed outlook, an imminent Bitcoin record and lurking China contagion. What I'm watching for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/10/16/Dollar-Deals-with-Tight-Fed-Outlook-Bitcoin-Eyes-Record-Energy-Crisis-Worries-Continue.html https://t.co/LrlZXmF8jK
  • Crude oil and coal prices hit fresh levels overnight as supply issues threaten to worsen an already fragile energy situation. Asia is particularly susceptible after regional flooding shuttered coal mine operations. Get your market update here:https://t.co/tgIsootO7y https://t.co/2RlYVgawgf
  • The Japanese Yen has moved lower across the board and is making multi-year lows against the USD. Will it snap the range, and do the same against EUR? Get your market here:https://t.co/tQYc6cPuM0 https://t.co/YDEELagtTb
  • The British Pound has bounced off its low against USD while it’s trapped in wide ranges against the EUR and CHF. How long will GBP be tied to its Continental Europe constituents? Find out here:https://t.co/xs3EMWWIom https://t.co/aHXoGbOBKq
  • (Weekly Fundy) Australian Dollar Outlook: AUD/USD Back on the Offensive as Covid Restrictions Ease #AUD $AUDUSD #Covid https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/10/16/Australian-Dollar-Outlook-AUDUSD-Back-on-the-Offensive-as-Covid-Restrictions-Ease.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/sGSPXKQyne
  • The Australian Dollar is seemingly back on the offensive as lockdowns ease in Sydney and Melbourne. Improving sentiment may allow AUD/USD to capitalize on rising equities and commodity prices. Get your weekly $AUD forecast from @ddubrovskyFX here: https://t.co/JDhqHY9OW1 https://t.co/JyLUT4cNnF
GBP/JPY Outlook: GBP vs JPY Price – Bulls in Charge

GBP/JPY Outlook: GBP vs JPY Price – Bulls in Charge

Mahmoud Alkudsi, Analyst

GBP/JPY Technical Forecast

  • GBP/JPY rallies to a multi-week high
  • Bullish signals on GBP vs JPY price chart

GBP/JPY- Bulls Gain the Upper Hand

On Friday, GBP/JPY rallied to a four-week high at 133.46 then closed the weekly candlestick in the green with a near 1.9% gain. This week, the market has continued bullish price action and printed 136.26 -its highest level in over two and a half months.

Alongside this, the Relative Strength Index (RSI) has risen this week from 57 to 66 highlighting an accelerating bullish momentum.

GBP/JPY Daily PRice CHART (AUG 8, 2018 – June 2, 2020) Zoomed Out

GBPJPY daily price chart 02-06-20 zoomed out

GBP/JPY Daily PRice CHART (FEB 29 – June 2, 2020) Zoomed In

GBPJPY daily price chart 02-06-20 zoomed in

By the end of last week, GBP/JPY closed above the 50-day moving average resistance and signaled a possible start of a bullish move. Yesterday, the price climbed to the current trading zone 133.30 – 135.81 eyeing a test of the high end of it.

A close above the high end of the aforementioned trading zone reflects a stronger bullish sentiment and might cause a rally towards 137.83. A further close above that level may extend the rally towards 141.00.

On the other hand, any failure in closing above the high end of the zone signals bull’s hesitation and may send GBPJPY to 133.30. A further close below that level could send the price even lower towards 130.84.

That being said, the weekly support and resistance levels underlined on the daily chart (zoomed in) should be monitored in both bullish/ bearish scenarios.

GBP/JPY Four Hour PRice CHART (April 29 – June 2, 2020)

GBPJPY four hour price chart 02-06-20

On May 19, GBP/JPY rallied above the downtrend line originated from the April 30 high at 135.45 and generated a bullish signal. Last week, the price respected the uptrend line originated from the May 18 low at 129.51 indicating that bullish momentum was still intact. Today, the pair has violated the downtrend line originated from the April 9 high at 145.75 and produced an additional bullish signal.

A break above the 137.00 handle may encourage bulls to push towards 137.83. In turn, any break in the other direction i.e. below 134.20 could send GBPJPY for a test of the low end of the current trading zone discussed on the daily chart.

Nonetheless, the daily and support and resistance marked on the four-hour chart should be kept in focus.

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