GBP/JPY Moves Down For the 2nd Day In A Row, Crosses 100 Day Moving Average; Price Base in Formation Over Past 90 Days

GBP/JPY Price Recap

GBP/JPY is down 119 pips (0.83%) since yesterday (with its current price near 141.216), marking the 2nd 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 30.88% from the day prior, and up 167.92% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 34th for the day in terms of day-over-day price change. Here is a price chart of GBP/JPY.

GBP/JPY Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/JPY crossed below its 100 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 100 day average, which is 40.2 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Price action traders in particular will want to note that the 90 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 8 out of the past 14 days.

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 20 sell signals. This imputes a buy/sell ratio of 0.5, which is bearish. 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.

Wait for a retest of that symmetrical triangle before placing a trade….__________________________________________________________________________________________________________________________________________________Guys if you like my ideas, please drop a like and follow me if u like my trades….Every trader has the freedom to place a trade in any direction.