GBP/JPY Down 89 Pips, Breaks Below 200 Day Average; in a Downtrend Over Past 14 Days

GBP/JPY Price Recap

GBP/JPY is down 89 pips (0.65%) since yesterday (with its current price near 137.184), marking the 5th day in a row a decline has happened. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 11.03% from the day prior, and up 143.76% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/JPY ranked 31st yesterday in terms of percentage price change. The price chart of GBP/JPY below illustrates.

GBP/JPY Technical Analysis

Notably, GBP/JPY crossed below its 200 day moving average yesterday. 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 44.7 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. For additional context, note that price has gone down 6 out of the past 10 days.

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. As for pairs with the least correlation, look no further than EUR/NZD if you’re focused on just this past week, or USD/HKD for a look at a broader, two week window.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPJPY, with 16 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.23, which is bullish. 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.

ello Friends, here is my idea to GBPJPY. I expect a short-term rise to the 38.2 Fib. (simultaneously resistance.*Just my opinion no financial advice.*