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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:
  • The Japanese Yen continues to be pummeled against most major currencies. Get your weekly Japanese Yen forecast from @HathornSabin here:
  • 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:
  • 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:
  • 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:
  • 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:
  • 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:
  • (Weekly Fundy) Australian Dollar Outlook: AUD/USD Back on the Offensive as Covid Restrictions Ease #AUD $AUDUSD #Covid
  • 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:
  • The Dow Jones and S&P 500 appear to be vulnerable as retail traders continue to buy into their pullbacks. This is shown via IGCS, which is typically a contrarian indicator. Get your market update from @ddubrovskyFX here:
GBP/JPY Forecast: GBP vs JPY Price – A Risk of a Possible Reversal

GBP/JPY Forecast: GBP vs JPY Price – A Risk of a Possible Reversal

Mahmoud Alkudsi, Analyst

GBP/JPY Pirce- Technical Outlook

  • Risk-on sentiment sends GBP/JPY to a multi-month high
  • GBP vs JPY price chart reveals a weaker upward trend

GBP/JPY - Bullish Market

On Friday, GBP/JPY took off to an over three-month high at 139.74 then closed the weekly candlestick in the green with a 4.2% gain. The Japanese yen lost value against major currencies due to a lower demand for safe havens caused by the optimism of a quicker economic recovery after many weeks of lockdown.

This week, the Relative Strength Index (RSI) has abandoned the overbought territory highlighting that bulls were losing momentum.

GBP/JPY Daily PRice CHART ( July 18, 2018 – June 10, 2020) Zoomed Out

GBPJPY daily price chart 10-06-20 zoomed out

GBP/JPY Daily PRice CHART (March 26 – June 10, 2020) Zoomed In

GBPJPY daily price chart 10-06-20 zoomed in

On May 22, GBP/JPY corrected its downward trend and created a higher low at 131.78. A week later, the price closed above the 50-day moving average then rallied to a multi-month high. However, the pair has declined this week to the current trading zone 135.81 – 137.83 indicating a weaker bullish sentiment.

A close below the low end of the aforementioned zone reflects bull’s hesitation and could send GBPJPY towards 133.30. Any further close below that level could send the price even lower towards 130.84.

On the other hand, a close above the high end of the zone signals that bulls could push towards the 141.00 handle. Any further close above this level may extend the rally towards 143.20.

See the daily chart (zoomed in) to know more about the key levels to monitor in both scenarios.

GBP/JPY Four Hour PRice CHART (April 29 – June 10, 2020)

GBPJPY four hour price chart 10-06-20

Yesterday, GBP/JPY rebounded and created the second shoulder of a head and shoulders pattern marked on the chart therefore, a break below the neckline located at 136.30 would be considered a bearish signal. Additionally, a bearish divergence between the price and the RSI has been noticed with the first creating a high with a higher high meanwhile, the latter created a high with a lower high highlighting a possible reversal of the upward trend.

Thus, a break below 135.49 could send GBPJPY towards 134.56 while a break above 139.74 may trigger a rally towards 140.76. Nonetheless, the daily and support and resistance underlined 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.