GBP/JPY Up 7 Pips Over Past 4 Hours, Came Into Today Up For the 3rd Day In A Row; Pin Bar Pattern Appearing on Chart

GBP/JPY 4 Hour Price Update

Updated March 26, 2020 05:12 AM GMT (01:12 AM EST)

GBP/JPY entered the current 4 hour candle at 131.313, up 7 pips (0.05%) from the previous 4 hours. Out of the 40 instruments in the Forex asset class, GBP/JPY ended up ranking 23rd for the four-hour candle in terms of price change.

GBP/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/JPY is up 24 pips (0.18%) since yesterday (opening today near 131.1930732), marking the 3rd day in a row an increase has occurred. Compared to its peers in the Forex, GBP/JPY gave its buyers a return that ranked 16th in terms of percentage change since yesterday. Here is a price chart of GBP/JPY.

GBP/JPY Technical Analysis

Notably, the current price of GBP/JPY is sitting close to its 20 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 95.3 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. 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 down 18 out of the past 30 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPJPY, with 7 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 1.17, 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.

The movement has not been able to penetrate the ema 100 line….The channel formed is a forwarding channel, rising wedge….If this last 4H candle is closed below the green candle, it will be a strong signal for this pattern to be succeed when the support channel of the pattern succesfully broken.