GBP/JPY Down 240 Pips; in a Downtrend Over Past 30 Days

GBP/JPY Price Recap

GBP/JPY is down 240 pips (1.79%) since yesterday (with its current price near 131.483), marking the 2nd day in a row a decline has happened. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 29.59% from the day prior, and up 134.82% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/JPY ranked 30th yesterday in terms of percentage price change. Here is a 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 607.1 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 11 out of the past 14 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPJPY, with 12 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 1, which is neutral. As for the rationale, technical traders seem to be citing the appearance of divergence, fibonacci and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

GBPJPY structure shows a bearish A-B-C correction and With the intermediate wave (B) is likely completed, we can expect an impulsive move to the upside also there is a divergence that likely give us hint that wave B completed