GBP/JPY Down 419 Pips; in a Downtrend Over Past 14 Days

GBP/JPY Price Recap

GBP/JPY is down 419 pips (3.23%) since yesterday (with its current price near 125.565), marking the 3rd 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 down 11.39% from the day prior, but up 8.7% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 36th 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 20 day average, which is 1141.6 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.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPJPY, with 11 buy signals on our radar and 11 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 a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

However, the market chart didn’t hit my confirmation entry price level and stop loss region, so that I’m missed this trade opportunity….2.Meanwhile, I’m realized that I’m made a mistake on the confirmation entry price level….You need to setup Double Exponential Moving Average (DEMA) on the market chart before you take a trade.