- Analytics
- News and Tools
- Market News
- GBP/JPY Price Prediction: Pulling back within established short-term downtrend
GBP/JPY Price Prediction: Pulling back within established short-term downtrend
- GBP/JPY is correcting within a short-term downtrend.
- The odds favor a resumption lower once the correction completes.
GBP/JPY has pulled back up to resistance at 186.51 in a counter-trend reaction after plumbing new lows.
The descending sequence of peaks and troughs since the September 2 high suggests the pair is in a short-term downtrend.
GBP/JPY 4-hour Chart
Since it is a principle of technical analysis that “the trend is your friend” more weakness is expected.
There is every chance, therefore, that the pull back will soon run out of steam and prices will resume their downtrend.
A break below the 183.72 (September 11 low) would confirm a lower low to the next bearish target at 182.82 (August 6 swing low), followed by 180.06, the low of August 5.
The Relative Strength Index (RSI) momentum indicator is showing bullish convergence with price. On September 4 RSI entered oversold territory when price bottomed; on September 12 price is even lower but RSI is actually higher. The non-correspondence is a mildly bullish indication.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
