GBP/JPY Down 271 Pips; in a Downtrend Over Past 14 Days

GBP/JPY Price Recap

The choppiness in the recent daily price action of GBP/JPY continues; to start today, it comes in at a price of 129.87 US dollars, down 271 pips (2.04%) since yesterday. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 2.13% from the day prior, and up 283.53% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 35th for the day in terms of day-over-day price change. The price chart of GBP/JPY below illustrates.

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 762.1 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 7 out of the past 10 days.

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 12 sell signals. This imputes a buy/sell ratio of 1.17, which is neutral. As for the rationale, technical traders seem to be citing the appearance of channel and fibonacci technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

#Technical_analysis:Globally (D1):The currency pair came close to the zone of global support: 130-127….Mathematical resistance and support levels for this week: a) Resistance: 133.72 / 136.22 / 137.71;b) Support: 130.34 / 127.73;#Indicative_analysis:* Leading indicators: These fund indicators are currently located near the “zone of potential purchases”, but can not enter it….¬†For # traders we provide a service – copying transactions from our trading account.