GBP/JPY Up 10 Pips Over Past Hour, Crosses 20 and 100 Day Moving Averages; Pin Bar Pattern Appearing on Chart

Hourly Update

(Last Updated October 5, 2020 16:25 GMT)

Currently, GBPJPY’s rate is up 0.098 (0.07%) from the hour prior. It’s been a feast for bulls operating on an hourly timeframe, as GBPJPY has now gone up 4 of the past 5 hours. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on GBPJPY. Given that we see an uptrend on the 20, 10 and 5 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

GBPJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPJPY entered today at 136.168, up 28 pips (0.2%) from the day prior. Out of the 40 instruments in the Forex asset class, GBPJPY ended up ranking 7th for the day in terms of price change. Let’s take a look at price chart of GBPJPY.

GBPJPY

GBPJPY Technical Analysis

Notably, GBPJPY crossed above its 20 and 100 day moving averages 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 15.1 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Volatility for GBPJPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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 up 17 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

Of note is that traders in aggregate have opinions 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.

GBPJPY is in the upward trending channel, coming off a HL & a inverted head and shoulders pattern, I expect to see a bullish run after a pullback into previous broken S turned R….Investor fears over the Trump’s health are easing while health officials expect to discharge the President from Walter Reed as early as today….Also, optimism over a fresh US fiscal stimulus plan is growing as analysts see increased urgency from both sides, House speaker Nancy Pelosi is pushing for the appeal as well.