This is a GBPJPY Technical Analysis on a Forex Blog.
GBPJPY – On the H8 chart we see the GBPJPY going sideways after reaching a high of around 146.76.
The pair have been in an uptrend and we have not broken below the diagonal trendline stretching all the way back to 5th October 2016.
However, the most recent news from the Bank of England yesterday did not go well with the GBPJPY bulls. The pair fell a few hundred pips yesterday as the BOE announced that they will keep rates unchanged. They have also announced that they have cut the country’s economic growth forecast to 1.7% from 1.9%.
We will be looking for a break below the diagonal trendline which will indicate to us that there may be more bearish moves for this pair.
It needs to first break below the 144.0 handle before it can test the diagonal trendline.
Below that diagonal trendline and we are in bear territory.
At the moment, GBPJPY looks like it is going into sideways mode.
With the weakening of USDJPY which at the moment of this article being written is battling at the 110.0 handle.
Further weakness in the USDJPY will provide fuel for GBPJPY bears to come in again.
Any retrace back up to the 147.0 level can be seen as an opportunity to short GBPJPY.
We will see some bears come in if it goes up towards the moving averages which at the current moment is pointing at 3pm, indicating sideways momentum for now.
A break below 144.0 and more bears will join in the show. A short trade can be initiated once price retest the 144.0 level after breaking and closing below that level.
Only a close above 147.8 will make us re-look and re-evaluate the whole GBPJPY situation again.
I hope that you have found this article useful. Do look out for more articles from us.
Trade well always and to your success!
Pro Trader & Founder – ForexAchievers.com
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