GBP/JPY – Potential for the bulls to rise to the fore

Justin Freeman

Until 22nd June, the GBP/JPY currency pairing (D1 time-frame) had been influenced by a bearish drive. Following that date, a lower bottom formed at 131.728. Bullish sentiment then prevailed.

Following this, the price continued to move upwards, through the Simple Moving Averages of 15 and 34. The Momentum Oscillator also crossed into the zero baseline, which may have made technical traders aware of a possible new uptrend.

A critical resistance level formed at at 135.899 on 9th July, whereby the bears attempted to pull the market lower. A higher bottom at 133.958 then formed on 14th July. At present, the market is being pulled toward the top of the price chart.

If the GBP/JPY currency pair cross the critical resistance level of 135.899, three price targets could be calculated from that point. By using the Fibonacci tool at the higher top (135.899) and moving it to the support area (133.958), a number of targets could be brought into consideration. The first target could be projected at 137.099 (161 %) and the next is likely at 139.040 (261.8%). A third target could be expected at 142.180 (423.6%) if this upward momentum does continue.

Should the 133.958 support level be achieved, the bullish scenario would no longer be valid and may be required for review.

If the upward momentum remains and the demand exceeds supply, the outlook for the GBP/JPY daily time-frame will stay at a bullish level.


Justin Freeman

Latest news

EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
The pair containing the single European currency and the British pound has been closely watched in recent weeks. Read more
NZD/USD Looking at 0.6503 Support, US Debate on Cards
The New Zealand dollar experienced some temporary upturns following the announcement from the Reserve Bank of New Zealand that interest rates will be held firm. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
5
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    skilling logo
    LegacyFX Small Logo
    Forex.com Logo
    City Index Logo
    ATFX Logo
    OctaFX Logo
    XM Logo
    VantageFX Small Logo
    BlackBull Markets Small Logo
    HYCM Logo
    IQ Option Logo
    Plus500 Small Logo
    FXTM Logo
    Pepperstone
    Oinvest Small Logo
    Oanda Small Logo
    Exness Small Logo