GBPJPY Up 28 Pips On Hourly Chart, Moves Up For the 2nd Straight Day; in a Downtrend Over Past 30 Days

Hourly Update

(Last Updated October 6, 2020 15:17 GMT)

At the time of this writing, GBPJPY’s rate is up 27.9 pips (0.2%) from the hour prior. This move is a reversal from the hour prior, which saw price move down. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 50 hour moving average, resulting in them so that price is now turning above it. 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 is up 106 pips (0.78%) since the day prior (opening today near 137.23), marking the 2nd straight day an increase has occurred. Compared to its peers in the Forex, GBPJPY gave its buyers a return that ranked 3rd in terms of percentage change since the day prior. Here is a price chart of GBPJPY.

GBPJPY

GBPJPY Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBPJPY crossed above 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 54.7 pips away. 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 18 out of the past 30 days.

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 16 sell signals. This imputes a buy/sell ratio of 0.69, which is bearish. As for the rationale, technical traders seem to be citing the appearance of flag, moving average and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Suggestion: SELL GBPJPY AT CMP 137.10-20 SL ABV 137.90 TGT 136.50/136.60 ELSE BUY ABOVE 138 TGT 139.50/70 SL BELOW 137.20