Loading...
by Charalambos Pissouros

Will GBP/JPY Continue its Upside Trajectory?

GBP/JPY surged on Thursday, but on Friday, it hit resistance near the 147.00 barrier and pulled back to find support at around the 146.30 level, where it paused for a while. Bearing in mind that the pair continues to trade above the upside support line drawn from the low of the 15th of August, we would consider the near-term outlook to be positive.

A clear and decisive break above 147.00 would confirm a forthcoming higher high on the 4-hour chart, perhaps initially aiming for our next resistance, near 147.70, defined by the peak of the 18th of July. Another break above that level could carry more bullish extensions and perhaps set the stage for the 148.50 hurdle, a resistance marked by the inside swing low of the 16th of July.

Shifting attention to our short-term oscillators, we see that the RSI shows signs of bottoming from near its respective upside support line. It could cross back above 70 soon. This supports the case for the pair to rebound and trade higher. However, the MACD, although positive, lies below its trigger line and points down, which make us cautious that a corrective retreat may be looming.

A dip below 146.30 could confirm the case for a setback and could open the path towards the 145.65 zone, where another break could see scope for declines towards the 144.65 barrier, or the aforementioned upside support line. That said, even if this is the case and the pair corrects lower, we would still consider the outlook to be cautiously positive as the bulls could take advantage of the rate’s proximity to the upside line. We would like to see a clear dip below 144.35 before we totally abandon the bullish case.

GBP/JPY 4-hour chart Technical Analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT