HomeContributorsTechnical AnalysisGBPJPY Bearish, Technicals Point To Further Downside

GBPJPY Bearish, Technicals Point To Further Downside

GBPJPY shifted out of its neutral phase and turned bearish on the 4-hour chart after a break below the key 144.00 level on August 8. Momentum indicators are bearish although the slopes of both RSI and MACD suggest a weaker downside momentum.

The market is currently in the lower 141.00 handle. A breakdown at this point would bring into focus the next major low at 139.84 and then the June 12 low at 139.10.

Major resistance lies at 142.50. Prices would need to bounce back above 144.00 to weaken the risk of further declines and bring back a neutral bias. Rising above the cloud and into the 145.00 handle would open the way for a re-test of the 146.80 high. Clearing the July 11 high of 147.77 would see a resumption in the June to July uptrend.

The falling Tenkan-sen and Kijun-sen lines are supportive of the bearish bias. Further downside is expected since the market is below the Ichimoku cloud.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading