GBP/JPY Up 19 Pips On 4 Hour Chart, 2 Day Up Streak Snapped; Pin Bar Pattern Appearing on Chart

GBP/JPY 4 Hour Price Update

Updated July 21, 2020 09:07 AM GMT (05:07 AM EST)

GBP/JPY is up 19 pips (0.14%) since the previous 4 hours (opening the current 4 hour candle near 135.987), marking the 2nd candle in a row it has gone up. Out of the 37 instruments in the Forex asset class, GBP/JPY ended up ranking 8th for the four-hour candle in terms of price change.

GBP/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for GBP/JPY, which started today off at 135.7743291, down 3 pips 0.02% from yesterday. Relative to other instruments in the Forex asset class, GBP/JPY ranked 33rd yesterday in terms of percentage price change. The price chart of GBP/JPY below illustrates.

GBP/JPY Technical Analysis

Notably, the current price of GBP/JPY is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 20 day average, which is 124.1 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. Or to simplify this another way, note that out of the past 10 days GBP/JPY’s price has gone down 7 them. 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

We’re seeing some traders come out with interesting conviction on GBPJPY, with 18 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 1.12, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

On the 17th July it dropped to a triple confirmation point, where price touched the bottom trendline of both 1H and the daily closed triangles and it also aligned with the 0.618 Fibonacci level….After that price will move once again towards the upper trendline ….If any of the scenarios takes place a small correction or a move towards 135.000 must take happen after the price meets our upper trendline .