GBP/JPY Down 11 Pips, in a Downtrend Over Past 14 Days; Doji and Pin Bar Patterns Appearing on Chart

GBP/JPY Price Recap

GBP/JPY is down 11 pips (0.09%) since yesterday (with its current price near 129.758), marking the 2nd day in a row a decline has happened. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 14.35% from the day prior, but down 6.93% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 21st for the day in terms of day-over-day price change. Let’s take a look at price chart of GBP/JPY.

GBP/JPY Technical Analysis

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 200 day average, which is 769.3 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days GBP/JPY’s price has gone down 11 them. Also, candlestick traders! Note we see doji and pin bar patterns appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPJPY, with 14 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.88, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Critical level : 126.779what should we expect from critical price ?…I assume this price has to be very crucial for market to go more downside, below 126.779, If price fail to break / stay above this level after rejection, we assume (e) triangle will take place with target around 140.444 – Which is very high liquidity as so much transaction held there….We will find buy setup, if any , above critical level on lower timeframe.