GBP/JPY Down 43 Pips Over Past 4 Hours, Makes Big Move Relative to Two Week Trend; in an Uptrend Over Past 30 Days

GBP/JPY 4 Hour Price Update

Updated July 22, 2020 09:18 AM GMT (05:18 AM EST)

GBP/JPY is down 43 pips (0.32%) since the last 4 hour candle (opening the current 4 hour candle near 135.465), marking the 2nd candle in a row a decline has happened. Compared to its peers in the Forex, GBP/JPY gave its buyers a return that ranked 35th in terms of percentage change since the last 4 hour candle.

GBP/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/JPY is up 3 pips (0.02%) since the previous day (opening today near 135.99072608), marking the 4th day in a row it has gone up. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 21st for the day in terms of price change. Let’s take a look at price chart of GBP/JPY.

GBP/JPY Technical Analysis

Notably, GBP/JPY is now close to its 20, 50, 100 and 200 day averages, located at 134.7269, 134.5355, 133.693 and 137.0988 respectively, and thus may be at a key juncture along those timeframes. 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 110.8 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. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 5 out of the past 10 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPJPY, with 10 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.77, which is bearish. 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.

GBPJPY is Trading In-Channel Pattern….According to chart pattern analysis, we might see a small downside in GBPJPY from the current level, as it is trading in channel pattern the long term trend is on the upside….One can initiate the short side trade with proper risk management and stop loss.