GBP/JPY 3 Day Up Streak Broken, Crosses 50 Day Moving Average; Doji and Pin Bar Patterns Appearing on Chart

GBP/JPY Price Recap

GBP/JPY is down 11 pips (0.08%) since yesterday (with its current price near 142.769), marking the 2nd day in a row it has gone down. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 61.86% from the day prior, but down 21.9% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/JPY ranked 22nd yesterday in terms of percentage price change. Let’s take a look at price chart of GBP/JPY.

GBP/JPY Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/JPY crossed below its 50 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 11.2 pips away. It should be noted, though, the 200 day simple moving average turned downwards, which may be a bearish sign. Related to the moving average crossover is that GBP/JPY may have broken its trend on the 90 day basis, as the trend’s momentum appears to be slowing down. Volatility for GBP/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Or to simplify this another way, note that out of the past 14 days GBP/JPY’s price has gone up 8 them. And for candlestick traders, a special treat: there are doji and pin bar patterns showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPJPY, with 22 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 1.83, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

GBPJPY Broke the trendline and made a re-test.Price will touch support zone (142.43) and then will raise again to hit 143.80.