GBP/JPY appears to be like prepared to increase a months-long downtrend!
How low can Guppy go earlier than the bulls step in?
We’re taking a more in-depth take a look at the pair’s each day chart patterns!
GBP/JPY Day by day Foreign exchange Chart by TradingView
The British pound has taken successful in latest classes as rising tensions between Russia and Ukraine spooked traders within the area. On the identical time, escalating U.S.-China commerce tensions are fueling international development worries and capping GBP demand, despite the fact that the U.Okay. has comparatively much less publicity to steep U.S. tariffs.
On the flip facet, a weakening U.S. greenback is boosting the Japanese yen’s enchantment as a protected haven, whereas hawkish expectations for the Financial institution of Japan are giving the yen much more assist.
Do not forget that directional biases and volatility situations in market worth are sometimes pushed by fundamentals. Should you haven’t but finished your homework on the British pound and the Japanese yen, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
GBP/JPY, which has been in a downtrend since late 2024, just lately turned decrease from the 196.00 psychological degree close to the R1 Pivot Level at 196.69.
Bearish candlesticks and draw back momentum might drag GBP/JPY under the 100 and 200 SMAs, opening the door for a transfer towards the midpoint of the descending channel close to the S1 Pivot Level at 190.53 and the 190.00 psychological degree.
Then again, if “TACO trades” acquire momentum and threat sentiment shifts in favor of the bulls, GBP/JPY might retest the 196.00 highs and presumably break above the descending channel resistance.
Whichever bias you find yourself buying and selling, don’t overlook to follow correct threat administration and keep conscious of top-tier catalysts that might affect general market sentiment!
Disclaimer:
Please remember that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are supposed to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, threat administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
