GBP/JPY Down 10 Pips Over Past 4 Hours; Doji Pattern Appearing on Chart

GBP/JPY 4 Hour Price Update

Updated August 03, 2020 05:08 AM GMT (01:08 AM EST)

GBP/JPY entered the current 4 hour candle at 138.539, down 10 pips (0.07%) from the previous 4 hours. Out of the 37 instruments in the Forex asset class, GBP/JPY ended up ranking 26th 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 138.552414, up 6 pips 0.04% from the previous day. Compared to its peers in the Forex, GBP/JPY gave its buyers a return that ranked 13th in terms of percentage change since the previous day. Below is a price chart of GBP/JPY.

GBP/JPY

GBP/JPY Technical Analysis

The first thing we should note is that GBP/JPY is now close to its 20 and 200 day averages, located at 135.9444 and 136.7901 respectively, and thus may be at a key juncture along those timeframes. 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 176.2 pips away. It should be noted, though, the 50 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 30 days GBP/JPY’s price has gone up 17 them. And for candlestick traders, a special treat: there is a doji 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 17 sell signals. This imputes a buy/sell ratio of 1.06, 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.

Waiting for the price to break the support zone of 138.500 and to break the uptrend trendline….If it breaks the line and stays below it, then we open in shorts with TP in 137….If the price stays above the 138.500 support, then we wait for a break in the 139 resistance to enter in longs.