GBP/JPY Heads Down For the 2nd Day In A Row; in a Downtrend Over Past 30 Days

GBP/JPY Price Recap

GBP/JPY is down 240 pips (1.79%) since yesterday (with its current price near 131.483), marking the 2nd day in a row it has gone down. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 29.59% from the day prior, and up 134.82% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 30th for the day in terms of day-over-day price change. Here is a 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 200 day average, which is 607.1 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 11 out of the past 14 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPJPY, with 19 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 2.38, 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.

Point B retracement of the primary XA leg lies at an approximate of 0.618….The content of this speculation (including all data) is organized and published by Nirvana Trades & Investments for the sole purpose of education and assistance in making independent investment decisions….NFT&I does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.