GBP/JPY Down 28 Pips On 4 Hour Chart, in a Downtrend Over Past 14 Days; Pin Bar Pattern Appearing on Chart

GBP/JPY 4 Hour Price Update

Updated June 26, 2020 01:11 PM GMT (09:11 AM EST)

GBP/JPY is down 28 pips (0.21%) since the previous 4 hours (opening the current 4 hour candle near 132.528), marking the 2nd candle in a row a decrease has occurred. Relative to other instruments in the Forex asset class, GBP/JPY ranked 36th the previous 4 hours in terms of percentage price change.

GBP/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/JPY is up 6 pips (0.05%) since the day prior (opening today near 133.1823024), marking the 2nd day in a row an upward move has occurred. Compared to its peers in the Forex, GBP/JPY gave its buyers a return that ranked 12th in terms of percentage change since the day prior. The price chart of GBP/JPY below illustrates.

GBP/JPY Technical Analysis

The first thing we should note is that the current price of GBP/JPY is sitting close to its 20, 50 and 100 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 100 day average, which is 11.2 pips away. Volatility for GBP/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days GBP/JPY’s price has gone up 17 them. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPJPY, with 16 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 1.33, which is bullish. 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.

gbpjpy now is on its horizontal support and may touch its descending channel line for retesting if fail then go short and if this pair success in breakout then go long