The near term outlook (up to 3 weeks) for the GBP/JPY is skewed slightly bearish. A combination of resistance hurdles is in play at (1). On the Daily time frame we have an imminent Double Top pattern forming and just above that, multi-year sloping trend line resistance which junctions with yearly horizontal resistance (red channel). Furthermore, the RSI indicator is suggesting that perhaps a pullback is due.
Having said that, the GBP/JPY pair is currently holding about 1% above its 200 period daily moving average and didn’t so much as flinch when it approached it on the 31st June. Any weakness around this resistance cluster (1) will be apparent if we break below the underside of the horizontal resistance zone, and more so if we break below the 200 DMA, which might be the last line of defence for the bulls, which could lead to a decline back to 135s. The alternative to this bearish picture, would be a convincing break and close above resistance at (1) on the 48-hour time frame, which should result in advancing price action into the 142s as a first target of interest to watch out for.
Having said that, the GBP/JPY pair is currently holding about 1% above its 200 period daily moving average and didn’t so much as flinch when it approached it on the 31st June. Any weakness around this resistance cluster (1) will be apparent if we break below the underside of the horizontal resistance zone, and more so if we break below the 200 DMA, which might be the last line of defence for the bulls, which could lead to a decline back to 135s. The alternative to this bearish picture, would be a convincing break and close above resistance at (1) on the 48-hour time frame, which should result in advancing price action into the 142s as a first target of interest to watch out for.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.