GBP/JPY Price Recap
133.886 (USD) was the opening price of the day for GBP/JPY, resulting in yesterday being a day in which price moved down 242 pips 1.78% from the day prior. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 20.35% from the day prior, but up 101.2% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/JPY ranked 38th yesterday in terms of percentage price change. Below 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 369.7 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days GBP/JPY’s price has gone down 8 them.
A final note on correlations: over the past 7 days, GBP/CHF has been the pair most correlated with GBP/JPY — not terribly surprising, given that GBP is in both currency pairs. On the flip side, in terms of pairs with the least correlation to GBP/JPY, NZD/USD is the pair that holds that distinction for the past week, while GBP/USD does on a two week basis.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on GBPJPY, with 13 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 1.3, which is bullish. As for the rationale, technical traders seem to be citing the appearance of pennant 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.
Hello, my dear friendsCurrently, GPBJPY has a bearish momentum withdrawing which suggest that we will see a retracement in the forthcoming hours, but before confirming this trade, wait a little bit for prices to show stable behavior above the descending trendline.Good luck,